New Work, Transformational and Virtual Leadership: Lessons from COVID-19 and Other Crises (Management for Professionals) 3030633144, 9783030633141

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Management for Professionals

Marc Helmold

New Work, Transformational and Virtual Leadership Lessons from COVID-19 and Other Crises

Management for Professionals

More information about this series at http://www.springer.com/series/10101

Marc Helmold

New Work, Transformational and Virtual Leadership Lessons from COVID-19 and Other Crises

Marc Helmold IUBH International University Berlin, Germany

ISSN 2192-8096     ISSN 2192-810X (electronic) Management for Professionals ISBN 978-3-030-63314-1    ISBN 978-3-030-63315-8 (eBook) https://doi.org/10.1007/978-3-030-63315-8 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

There is only one way to avoid criticism: Do nothing, say nothing, and be nothing Aristotle

Acknowledgements

COVID-19 has brought unprecedented human and humanitarian challenges. The pandemic has forced the adoption of new ways of working. Organizations must reimagine their work and the role of offices in creating safe, productive and enjoyable jobs and lives for employees. Companies around the world have felt the need to safeguard employees and to enter into new ways of working that even the most extreme business continuity plans had not envisioned. Across industries, leaders must use the lessons learnt from this large-scale new work-from-home experiment to reimagine how work will look like in the future, and what role offices will play. In addition, the increasing (especially the digital) interconnection and the unlimited exchange of data and information have led to a maximized transparency of enterprises, value adding activities and global supply chains. This leads to the question how to generate a competitive advantage for companies in the producing, trading, service or healthcare industries by adopting new work concepts. Even though the concept of New Work is not new, companies understand that the implementation of this framework will lead to significant improvements in all areas from raw material suppliers to the end customers. This book would not have been possible without the implicit and indirect support of practitioners, academics and students on doctoral and master levels. For practical relevance, I appreciate the input from executives, experts and HR professionals in many industries and from public organizations. I hope that the book will also contribute to understanding that alternative and new work concepts are key success factors in a highly competitive environment. I would like to thank many colleagues, students and friends for giving me the impulse to write this book with many USPs. Many thanks to Nisha Becker, who did the proofreading for this book. Berlin, September 2020 Marc Helmold

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Acronyms and Abbreviations

5C 7C

Comfort, Collaboration, Change, Challenge, Competency Completeness, Conciseness, Consideration, Concreteness, Courtesy, Clearness, Correctness ADKAR Awareness, Desire, Knowledge, Ability, Reinforcement AI Artificial Intelligence AM Additive Manufacturing AR Augmented Reality BMW Bayerische Motorenwerke CAD Computer-Aided Design CAM Computer-Aided Manufacturing CSR Corporate Social Responsibility DB Deutsche Bahn DT Deutsche Telekom EI Emotional Intelligence EPR Electronic Patient Record ERP Enterprise Resource Planning IOP Internet of People IOT Internet of Things IUBH International University Bad Honnef KPI Key Performance Indicator MNC Multinational Companies NACE National Association of Colleges and Employers RPA Robotic Process Automation SME Small and Medium-Sized Enterprises SSO Shared Service Centres TPS Toyota Production System USP Unique Selling Propositions VPD Virtual Production Development VPM Virtual Production Management VPP Virtual Production Planning VR Virtual Reality VRT Virtual Reality Therapy VW Volkswagen

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Contents

 1 Introduction to the New Work Concept��������������������������������������������������   1  2 New Work as an Opportunity for Performance Excellence ������������������  19  3 Change Management as the Trigger for New Work ������������������������������  31  4 Culture Change Towards New Work Concepts��������������������������������������  45  5 Virtual and Global Networks��������������������������������������������������������������������  55  6 Transformational Leadership in New Work Organizations������������������  67  7 New Office Concepts in the Post COVID-­19 Times��������������������������������  79  8 Managing New Work Through Emotional Intelligence (EI)������������������  91  9 Innovation Management as a Driver for Changing Work Styles����������  97 10 Diversity and New Work Teams���������������������������������������������������������������� 105 11 Artificial Intelligence (AI) as Impulse for New Work���������������������������� 113 12 Lean Management and New Work Concepts������������������������������������������ 121 13 New Work and Corporate Social Responsibility (CSR) ������������������������ 137 14 New Work in Education and Teaching���������������������������������������������������� 143 15 New Work in the Automotive Industry���������������������������������������������������� 157 16 New Work in Health Sector���������������������������������������������������������������������� 171 17 New  Work and Its Impact on Public Procurement and Global Supply Chains������������������������������������������������������������������������ 183 18 Outlook of New Work 2030 ���������������������������������������������������������������������� 193 Glossary of New Work and Other Terms�������������������������������������������������������� 197 Index�������������������������������������������������������������������������������������������������������������������� 207

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About the Author

Marc  Helmold  is full-time Professor at IUBH International University in Berlin. He teaches Bachelor, Master and M.B.A. in Performance Management, Lean Management, Procurement, General Management, Strategic Management and Supply Chain Management. Prof. Helmold had several top management positions in leading companies in Germany, the Czech Republic, Japan and China. Currently, he teaches Performance Management, Supply Chain Management, Organizational Behaviour and Negotiations in the international context at the IUBH University in Berlin and other universities in the UK and China. He also supports companies in Supply, Performance or Project Management. He acted as General Manager in Germany and China for an OEM in the railway and aerospace business and has introduced New Work concepts. While teaching at IUBH and managing his own consultancy, he implemented New Work concepts and improved performance and processes in national and international enterprises.

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1

Introduction to the New Work Concept

New work means that you can experience and feel work in a completely different way than before and that you have to prepare for this difference. Frithjof Bergmann

1.1 New Work: A New Concept for Transformation Working concepts, styles and behaviour have been undergoing fundamental and structural changes for several years. New Work is the outcome of this transformation and cultural change (Bergmann, 2019). The triggers for this development of New Work are many. Digitization, connectivity and globalization as well as demographic change are among the factors that contribute to the change in the world of work. The question of how companies and societies deal with the megatrend New Work is becoming increasingly important (Bergmann, 2019). The core values of the New Work concept are independence, freedom and participation in the community as outlined by the scientist Bergmann back in the 1980s. In addition to freedom and participation, New Work also integrates elements like liberty or self-esteem, a purposeful profession, development and social responsibility as shown in Fig. 1.1. New work for the individual should only consist of work that an employee really wants (activity and work that corresponds to the individual strengths and needs of employees). The concept of New Work describes the new way of working of today’s society in the global and digital age. The term was coined by the Austro-American social philosopher Frithjof Bergmann and is based on his research on the notion of freedom and the assumption that the previous work system was outdated (Bergmann, 2019). Certain attributes like self-esteem or participation are not new and already integrated into modern concepts and motivational theories like Lean Management, however, New Work concepts go beyond these concepts (Helmold, 2020).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_1

1

2

1  Introduction to the New Work Concept

1. Freedom

6. Social Responsibility

5. Development

2. Partcipation

New Work

3. Liberty

4. Purpose

Fig. 1.1  New Work Elements. (Source: Author’s Source)

Bergmann’s New Work concept starts with a critical assessment of the American understanding of liberty and self-esteem. He does not consider liberty the option to choose between two or more, more or less, better or worse options (liberty to choose); his understanding of liberty is the option to do something that is really, really important (decide what you want to do because you believe in it). The core values of the concept of New Work are autonomy, freedom and participation in the working environment and community (Hermeier, Heupel, & Fichtner-Rosada, 2019). New Work should offer new ways of creativity and personal development, thus contributing something really important to the job market. In this way, real freedom of action is possible and necessary. The main idea of New Work is to create space for motivation and performance through creativity and self-fulfillment (or the Pursuit of Happiness). Bergmann considers the traditional job system to be obsolete and outdated, in which enterprises have the great opportunity to get rid of wage labour and obsolete work models (Bergmann, 2019). The early capitalistic system of wage labour should slowly be transformed into New Work. This New Work should consist of three parts: • A third gainful employment. • A third High-Tech-Self-Providing (self-sufficiency) and smart consumption. • A third of work that the employee really wants. In this context and discussion of the New Work concept, the Covid-19 situation changed the work environments and work styles tremendously. The pandemic created unprecedented working conditions worldwide. Trade fairs and events were

1.1  New Work: A New Concept for Transformation

3

cancelled, employees were sent to the home office, schools, universities and day care centres closed, and entire regions and countries were undergoing shut downs. The effects of the coronavirus on organizations and companies cannot yet be assessed, but it is already becoming apparent: The virus is becoming a new work booster and has the potential to significantly accelerate the digital transformation and New Work concepts in many companies and organizations. This is urgently needed, because the future-oriented concepts of New Work and digital transformation have still not made it into the mainstream, as astonishing as that may be in 2021. But the corona crisis has shown, that New work is a successful model for achieving a competitive advantage. Questions in the post COVID-19 times are: How can companies and organizations design their work processes flexibly? How can employees network in interdisciplinary and global teams successfully? How do companies and organizations organize remote workplaces and how can communication and processes be made more efficient? The crisis asks these questions. New Work answers them. Entire companies, such as Twitter, Google, Siemens and Deutsche Telekom worked completely from home, meetings were held by video conference, and lessons, workshops and training courses were held in virtual classrooms. Universities changed from physical class rooms to virtual class rooms. Cancelled trade fairs allow exhibitors to get creative: Products are presented via live stream and even the book industry is making a virtue out of necessity with the hashtag #buchmessevorort and presenting new releases on social networks. The question is no longer whether concepts such as home office, agile work and virtual learning are carried out, but how. This is the great opportunity whose momentum must now be used. Will the cards be reshuffled due to Corona’s compulsory freeze? How do you work with colleagues when everyone works from home? Will we continue to integrate the new ways of working and living into our everyday lives in the future, and if so—to what extent? Are we going to be more aware of ourselves and the planet? And are we finally learning to slow down? We will probably only see the answers to these questions in a few months, but four trends are already emerging that could have a decisive impact on our future after the virus. Since the quantity of available gainful labour (traditional work to be done) in the context of the industrial society will become less due to automation in all economic domains, advocates of New Work suggest reduced gainful employment for everyone. The time released by this reduction of gainful employment should in return create the financial basis to create things that can neither be produced through do-it-­ yourself work (active work?) nor by neighbour-based networks. Satisfying the needs of mankind will be supported by high tech self-providing using the newest technology. In the near future, so-called Fabbers—automated all-in-one devices— could produce goods autonomously. Bergmann considers smart consumption that people should contemplate and decide what they really need. According to Bergmann, many products and things are irrelevant, since they consume more time when using them than they save. One example could be the garlic press where most of the time the time cleaning the device consumes more time than the “time saved” by using the press compared to

4

1  Introduction to the New Work Concept

manual pressing/cutting (Bergmann, 2019). By self-supply and smart consumption, people can maintain a good standard of living even though only one-third of the entire capacity is used for wage labour.

1.2 Work, That the Employee Really Wants This is the most important component of New Work. The idea is: work as such is endless and it is a lot more than what is and can be provided by the wage labour system. According to Bergmann, every human being can find work that is aligned with their own values, desires, dreams, hope, and skills. Since Bergmann denies a revolutionary process to overcome the wage labour system, change can only happen slowly and this change can only be achieved through people who closely analyze their real, real desires and pursue those desires. By doing so, they become more and more independent from the wage labour system. In so-called centres for new work the idea is that people collaborate and with the support of mentors, they try to identify what kind of work they really, really want to do. This process is of course complex, demanding and time-consuming. Bergmann uses the term self-unawareness (German: Selbstunkenntnis). By the process of trying to identify what a person really, really wants to do, a general movement could begin that changes one’s life so that people feel more alive (Bergmann, 2019). The psychologist Markus Väth developed Bergmann’s theory further. Based on Bergmann’s paper “New Work, New Culture”, Väth illustrates four pillars on which a successful implementation of New Work could be based on (Väth & Vollmoeller, 2016). Väth also stresses that traditional concepts in dominating industries like consulting will change too: • A conscious way of life (“Life Blending”) in combination with a reevaluation of the importance of work for one’s life. • A systematic model of competencies that are relevant to work in a highly complex, dynamic world. • A change model for organizations that enable a paradigm shift in culture and organizations. • An intensive debate about the role of work in society and a corresponding mandate from the political world (New Work Deal). New Work does not have a uniform definition according to Hackl, Wagner, Attmer, and Baumann (2017). New Work has definitely become a fashion-term during the COVID-19 crisis and pandemic. It appears in very different contexts throughout enterprises, literature and social networks. Sometimes it is about technology, sometimes about the free choice of workplace and time, almost always it is also about digital change. But how does this change our working world? And what can new work do for companies? We clear up myths and provide short and concrete answers to the question: What exactly does new work mean? Today, New Work mostly describes a very broad field and includes these topics: • Flexible working hours (e.g. part-time, flex-time, trust-based working hours, job sharing).

5

1.2  Work, That the Employee Really Wants

• Workplace flexibility (e.g. home office, remote work). • General flexibility of structures, thought patterns and habits (e.g. agile organizations). • Collaborative work (including team building). • Global and virtual teams (e.g. cross-functional and cross-border teams). • Diversity and equality (e.g. talent management and career prospects). • Mentoring, coaching or interdisciplinary projects (e.g. knowledge transfer). In academia and industry, it is apparent that the topics and elements about New Work are of highly increasing significance. This leads to the question, how far New Work is or will be integrated into enterprises and organizations? Figure 1.2 outlines that 74% of German companies have the trendy topic of New Work on their agenda, but many companies are content with home office regulations and mobile work instead of developing their corporate culture (Kienbaum, 2017). The survey asked also about the specific measures with which New Work should be established in companies. The most popular measure is to give employees the opportunity to work from home (home office). This is also linked to the result of the study that ranks second with 67% among the most popular new work instruments to make new mobile devices such as smartphones and laptops available that can be used regardless of location. After all, 47% of the respondents rely on an open and flexible office concept with job-related workplaces that can be freely selected. Important culture-­ related measures such as democratization of decisions or new digital leadership models still too often find no way into the new world of New Work. But this is the major weakness and shortcoming. Those companies, that do not take a holistic approach towards New Work run the risk that change may fail ultimately (Kienbaum, 2017; Lauer, 2020). In conclusion, one can say that many companies are concerned

Is New Work on the Agenda of your Company (%)

In what Areas have you implemented New Work Initiatives (%) 80 70

26

60 74

Yes

50

No

Has your Company established Initiatives to implement New Work (%)

40 70 30

67 47

20

34

10 0

37 63

Yes

19

Home Office

Mobile Technologies

17

Flexible Office Flat Hierarchies Leadership Democratisation Concepts Transformation of Decisions

No

Fig. 1.2  Implementation of New Work. (Source: Author’s Source, data adapted from Kienbaum (2017))

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1  Introduction to the New Work Concept

with New Work, but many still lack the holistic approach and the spirit to live New Work (Kienbaum, 2017).

1.3 Transformational Change as Part of New Work If enterprises want to maintain a sustainable and long-term competitive position in future, it is necessary to be able to continuously adapt to market conditions and drive change processes faster than the competition (Väth, 2019). Experts call this concept “Organizational Health”. In line with proven innovative companies and organizations in the field of New Work, it is therefore important that enterprises have a clear understanding where they stand in terms of New Work. Therefore, they have to start from a detailed diagnosis to implementation to achieve lasting changes in the organizational patterns and behaviours. This must be accompanied by a comprehensive development of skills (Brommer, Hockling, & Leopold, 2019). During the assessment it is important to ask questions: • What is the optimal structure of an organization? • How is management’s viewpoint on New Work. • How can change management been implemented? • What is the best change management concept? • How to transform leadership and management to change agents? • Are the hierarchies lean and agile? • How much agility makes sense? • How to implement New Work? • What steps can be implemented when? These are questions that customers and organisations are currently dealing with intensively. With diagnostic tools and change management concepts, change agents can support companies with the very first steps of a reorganization and ensure that it creates long-­term value. However, not only the formal mechanisms play a role in sustainable success. It is crucial that individual attitudes and behaviour in management and the workforce also change (Lauer, 2020).

1.4 New Work and Digitization New Work can offer great advantages for companies because it is an important prerequisite for successful digitization (Sterchi, 2018). The new framework and environmental requirements require new structures and fundamental cultural changes in companies. Flexibility, agility and collaboration are the most important prerequisites for holistic digitization and implementation of New Work concepts (Helmold, 2020). Only companies that make lasting changes to structures and forms of work can survive in an increasingly complex digital market and will still be successful, innovative and creative in 5 years. Most companies already have everything they need to shape their digital transformation: their own employees. The required knowledge is already in the company, it just has to be activated. And this is where

1.5  New Leadership as Part of New Work

7

new work comes in again, because it puts people (again) at the centre. Whether professions disappear completely, change or emerge, the big challenge will be how society and the world of work deal with those who are not qualified for the technological leap sufficiently quickly. How are they caught up in a society in which the individual is strongly defined by his work? How can you train them? Where do new professional doors or others open for social participation? And does it make sense to keep certain professions artificially alive? The risk is growing. If everything is predefined by technology, then there is no room for change and transformation. While some professions will not disappear, they will change significantly by eliminating previous tasks while adding new ones. Some experts in New Work believe that the cashier could continue to exist. Depending on the type of business, the cashier advises customers on products and designs or supports them in using customer-­related apps. Or it grants racks if the use of a robot is not worthwhile due to the quantity of goods or if the products have to be classified variably during ongoing business. Experts also believe that the taxi driver will not necessarily disappear as quickly. In autonomous driving, for example, many legal questions, such as liability, have not been clarified. Maybe the job of a taxi driver disappears for other reasons. For example, due to business models that could benefit from the inertia of legal systems, but which can influence the medium-term willingness and ability to perform services. Uber offers an example in different ways in different countries. But wherever machines take over, people are still needed (Sterchi, 2018). What new professions will digitization bring us? For instance, those who build on the new technologies like an avatar designer. If I want to move around in the virtual world, I need a digital personality. Who do I want to be virtually? How can I make myself attractive so that I can stand out from others? An avatar designer implements my wishes.

1.5 New Leadership as Part of New Work When it comes to success factors related to New Work, current trends and digital transformation in enterprises, the topic of transformational and new leadership styles quickly arises. Because successful change needs both digitization and the right leaders (Helmold, 2020). Impulses and signals from above and at the same time the participation and co-determination of the employees (Hermeier et  al., 2019). It is very clear that leadership in times of digitalization and new work must focus on people. Digital leadership means encouraging, (free) space for new ideas and also for mistakes. Digital leaders are role models, they strengthen their employees, network them and support their own actions—and thus pave the way to establish new work in your organization. Figure 1.3 outlines the new leadership success criteria and attributes that are important for a New Work culture. In a New Work environment, it is important that leaders and employees have an orientation towards common objectives. New Work leaders have to cascade objectives smartly and wisely to their employees. In this context it is important that responsibilities are delegated, too. Enterprises that successfully introduce New Work have flexible role

8

1  Introduction to the New Work Concept

Active Coaching and Training of Employees Integration of flexible Role models

Transparent Perfomance Indicators and Objectives

Delegation of Responsibilities to the Basis

Orientation through common Objectives

Dynamic and agile Management

Lean DecisionMaking Processes of

Leadership Success Criteria for New Work

Strategies for Conflict Resolution

Fig. 1.3  Success criteria for Leadership in New Work concepts. (Source: Author’s Source)

models as part of the leadership team. Leaders act as coaching and training bodies. New Work requires open and transparent performance indicators and objectives. The performance measurement and management system must therefore be dynamic, flexible and agile. This agility also affects fast and lean decision-making process. Finally, it is important that New Work layouts establish also strategies for conflict resolution between employees, mangers or stakeholders (Helmold & Samara, 2019).

1.6 Agility and New Work An agile enterprise is an organization that responds quickly to changes in the market­place and work­place trends. Agile companies are aware, that organizational and transformational changes are inevitable. Agile enterprises regularly assess their practices and processes to ensure they are conducive to optimal employee engagement, morale and performance (Hanschke, 2017). An agile company reacts successfully and swiftly to new competitors. They are innovative and are constantly challenging Agile companies need a clear overview and evaluation of the skills they need to be successful and competitive in the market, now and in the future. Projects can be a driving force for innovation and change. Defining and developing new projects is vital for every company. In most cases, project initiation and project staging are still implemented in a classic top-down manner. Today, ever more complex problems, for which extensive expertise is necessary, have to be solved. Often it is about topics that require diverse expertise from different areas. Flash organizations can be an answer to these challenges (Hanschke, 2017). Agility should lead to a state that companies are transforming self-learning organizations, which

1.7  Knowledge Transfer, Information Sharing and Life-Long Learning

9

automatically assess the upcoming needs throughout departments and the value chain to respond to customers, competitors and other stakeholders (Moran, 2015).

1.7 Knowledge Transfer, Information Sharing and Life-Long Learning Flexibility and collaboration are fundamental for holistic digitization. Much of the knowledge is in the minds of the employees. But how should knowledge transfer work when employees work in their silos? They need structures and ways of working that not only allow creative, innovative and free thinking, but actively promote it. In companies, their own digital transformation always begins with the successful networking of employees and the lively transfer of knowledge that this enables. In connection with knowledge transfer and knowledge management, the topic of skill management is becoming increasingly important. What knowledge does your company already have? What skills are there? Which will organizations need in the future? And how can they be used strategically? Good skill management and the strategic use of available skills can make the difference. Employees can work more according to their needs and feel more effective. That makes employees happier and more motivated. And as a result, they become more productive (Helmold, 2020). Another important topic for today’s new working world (and that of the future) is knowledge transfer, information sharing and life-long learning. But how does learning work today? And how can learning support more effective and collaborative collaboration? How important is learning in times of New Work? If companies want to promote collaborative work patterns among employees in the future (and we have to), they have to introduce appropriate learning, qualification and training methods. Peer learning, for example, can be a solution for this. Peer learning means different forms of cooperative learning. It is not just about sharing knowledge, but also about sharing experiences. Peer learning is cheap, effective, sustainable and what you have learned fits perfectly into the context of the respective company. It also networks employees with each other and promotes communication within the organization. Other methods can be onboarding schemes, coaching, train-the-trainer or mentoring programmes. The framework of New Work and New Learning must be adjusted to the requirements of companies for a dynamic, workplace-integrated competence development and the subsequent frequency and intensity with which employees have to educate themselves further and acquire new skills. As complexity and dynamics in the internal and external specialization and collaborations increase, the need for training and competence development increases as well. In terms of competence development, organizations therefore have concrete needs that are not met well by classical forms of qualification (e.g. seminar courses, continuing education courses), namely: • Respond to the Skills needed in a dynamic environment. • Introduce New Learning methods that fit the needs of the employees. • Reduce the time it takes an employee to acquire the necessary competencies to do their job in the most efficient and effective manner.

10

1  Introduction to the New Work Concept

• Change the learning context rapidly and in response to the real world. • Facilitate knowledge sharing within an organization. • Support a soft failure environment where mistakes have no impact on the real world, thus promoting a willingness to engage in measured risk-taking, focused on achieving a high level of polished performance in the real world. With a successful implementation, the employees feel more effective. They can work more according to their needs and life phases. They can collaborate more collaboratively with their colleagues and are happier and more motivated. Flexible work opportunities lead to a high level of commitment. There is less fluctuation. Innovative power and productivity will increase. In addition, companies that live New Work seriously do not need expensive employer branding.

1.8 Lessons and Trends from the COVID-19 Crisis As the COVID-19 pandemic resets major work trends, HR leaders and managers need to rethink workforce and employee planning, management, performance and experience strategies (Baker, 2020b). However, it is visible that many enterprises are hesitant to have a holistic approach on implementing New Work into the corporate culture of their organization. A Gartner survey reveals that 82% of company leaders and executives allow their employees to work partly from home, but fail to have a holistic approach on New Work. The Gartner survey of 127 company leaders, representing HR, Legal and Compliance, Finance and Real Estate, reveals that the majority of respondents intend to permit remote some working opportunities. For many organizations with employees working both on-site and remotely, adapting to a new, more complex hybrid workforce is the challenge as how people work together to get their job done evolves. Nearly half (47%) said they intend to allow employees to work remotely full time going forward. For some organizations, flex time will be the new norm as 43% of survey respondents reported they will grant employees flex days, while 42% will provide flex hours (see Fig. 1.4). “The COVID-19 pandemic brought about a huge experiment in widespread remote working”, said Elisabeth Joyce, Vice President of Advisory in the Gartner HR practice. “As business leaders plan and execute reopening of their workplaces, they are evaluating more permanent remote working arrangements as a way to meet employee expectations and to build more resilient business operations” (Baker, 2020b). The coronavirus pandemic will have a lasting impact on the future of work in nine key ways. The imperative for HR leaders is to evaluate the impact each trend will have on their organization’s operations and strategic goals, identify which require immediate action and assess to what degree these trends change pre-­ COVID-­19 strategic goals and plans. 32% of organizations are replacing full-time employees with contingent workers as a cost-saving measure. “It’s critical for business leaders to understand that large-scale shifts are changing how people work and how business gets done”, says Brian Kropp, Distinguished Vice President, Gartner.

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1.8  Lessons and Trends from the COVID-19 Crisis

Company leader intentions regarding flexible working after COVID-19 None of the above Others Shortened week work (4-10s) Flex hours for employees Flex days for employees Let employees work remote from home Let employees work remote partly from home 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Fig. 1.4  Company Leader intentions regarding flexible working after COVID-19. (Author’Source, adapted from Gartner Survey 2020)

“HR leaders who respond effectively can ensure their organizations stand out from competitors” (Baker, 2020a). There are nine future of trends of New Work in the post-COVID-19 times. Of the nine future of work trends, some represent accelerations of existing shifts; others are new impacts not previously discussed. And in some cases, COVID-19 has forced the pendulum of a long-observed pattern to one extreme.

1.8.1 Trend No. 1: Increase in Remote Working A recent Gartner poll showed that more employees will likely work remotely at least part of the time after COVID-19 versus 30% before the pandemic. As organizations shift to more remote work operations, it is important to enrich critical competencies employees will need to collaborate digitally, and be prepared to adjust employee experience strategies. Gartner recommends enterprises to assess how to shift performance goal-setting and employee evaluations for a remote context.

1.8.2 Trend No. 2: Expanded Data Collection The Gartner analysis shows that 16% of employers are using technologies more frequently to monitor their employees through methods such as virtual clocking in and out, tracking work computer usage, and monitoring employee emails or internal communications/chat. While some companies track productivity, others monitor

12

1  Introduction to the New Work Concept

employee engagement and well-being to better understand employee experience. Even before the pandemic, organizations were increasingly using nontraditional employee monitoring tools, but that trend will be accelerated by new monitoring of remote workers and the collection of employee health and safety data. Make sure to follow best practices to ensure responsible use of employee information and analytics.

1.8.3 Trend No. 3: Contingent Worker Expansion The economic uncertainty of the pandemic has caused many workers to lose their jobs and exposed others for the first time to nonstandard work models. Many organizations responded to the pandemic’s economic impact by reducing their contractor budgets, but there has since been a shift. Gartner analysis shows that organizations will continue to expand their use of contingent workers to maintain more flexibility in workforce management post-­ COVID-­19, and will consider introducing other job models they have seen during the pandemic, such as talent sharing and 80% pay for 80% work. “Our research finds that 32% of organizations are replacing full-time employees with contingent workers as a cost-saving measure”, says Kropp. “While gig workers offer employers greater workforce management flexibility, HR leaders will need to evaluate how performance management systems apply to these workers and determine whether they will be eligible for the same benefits as their full-time peers”.

1.8.4 Trend No. 4: Expanded Employer Role as Social Safety Net The pandemic has increased the trend of employers playing an expanded role in their employees’ financial, physical and mental well-being. Support includes enhanced sick leave, financial assistance, adjusted hours of operation and child care provisions. Some organizations supported the community by, for instance, shifting operations to manufacturing goods or providing services to help combat the pandemic and offering community relief funds and free community services. The current economic crisis has also pushed the bounds of how employers view the employee experience. Personal factors rather than external factors take precedence over what matters for organizations and employees alike. Employing such measures can be an effective way to promote physical health and improve the emotional well-­ being of employees.

1.8.5 Trend No. 5: Separation of Critical Skills and Roles Before COVID-19, critical roles were viewed as roles with critical skills, or the capabilities an organization needed to meet its strategic goals. Now, employers are

1.8  Lessons and Trends from the COVID-19 Crisis

13

realizing that there is another category of critical roles—roles that are critical to the success of essential workflows. To build the workforce you’ll need post-pandemic, focus less on roles—which group unrelated skills—than on the skills needed to drive the organization’s competitive advantage and the workflows that fuel that advantage. Encourage employees to develop critical skills that potentially open up multiple opportunities for their career development, rather than preparing for a specific next role. Offer greater career development support to employees in critical roles who lack critical skills.

1.8.6 Trend No. 6: (De-)Humanization of Employees While some organizations have recognized the humanitarian crisis of the pandemic and prioritized the well-being of employees as people over employees as workers, others have pushed employees to work in conditions that are high risk with little support—treating them as workers first and people second. Be deliberate in which approach you take and be mindful of the effects on employee experience, which will be long-lasting. Address inequities if remote and on-site employees have been treated differently. Engage task workers in team culture and create a culture of inclusiveness.

1.8.7 Trend No. 7: Emergence of New Top-Tier Employers Prior to COVID-19, organizations were already facing increased employee demands for transparency. Employees and prospective candidates will judge organizations by the way in which they treated employees during the pandemic. Balance the decisions made today to resolve immediate concerns during the pandemic with the long-­ term impact on the employment brand. For example, advise CEOs and executive leaders on decisions regarding executive pay cuts and make sure financial impacts are absorbed by executives versus the broader employee base. Progressive organizations communicate openly and frequently to show how they are supporting employees despite the implementation of cost-saving measures. Where feasible, look for opportunities to arrange talent-sharing partnerships with other organizations to relocate employees displaced from their jobs by COVID-19.

1.8.8 Trend No. 8: Transition from Designing for Efficiency to Designing for Resilience The 2019 Gartner organization design survey found that 55% of organizational redesigns were focused on streamlining roles, supply chains and workflows to increase efficiency. While this approach captured efficiencies, it also created

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1  Introduction to the New Work Concept

fragilities, as systems have no flexibility to respond to disruptions. Resilient organizations were better able to respond—correct course quickly with change. To build a more responsive organization, design roles and structures around outcomes to increase agility and flexibility and formalize how processes can flex. Also, provide employees with varied, adaptive and flexible roles so they acquire cross-­ functional knowledge and training. “D&I leaders will need to be involved in role design and creation of flexible work systems to ensure that employees of all backgrounds and needs are considered when the organization designs new workflows”, said Ingrid Laman, Vice President, Advisory, Gartner.

1.8.9 Trend No. 9: Increase in Organization Complexity After the global financial crisis, global M&A activity accelerated, and many companies were nationalized to avoid failure. As the pandemic subsides, there will be a similar acceleration of M&A and nationalization of companies. Companies will focus on expanding their geographic diversification and investment in secondary markets to mitigate and manage risk in times of disruption. This rise in complexity of size and organizational management will create challenges for leaders as operating models evolve. Enable business units to customize performance management, because what one part of the enterprise needs might not work elsewhere. As organizational complexity complicates career pathing, providing reskilling and career development support—for example, by developing resources and building out platforms to provide visibility into internal positions.

1.9 Critical Viewpoints on New Work Concepts New Work‘s flexibility in terms of time and location can also have its downsides. Practitioners and Academics fear a time limitation of work, which from a competitive point of view urges to be approachable and competent to provide information at any time. However, the increased expectations regarding the flexibility of employees in terms of time make work processes more difficult to plan and may ultimately also reduce productivity (Helmold, 2020). With all the changes brought about by Industry 4.0, agility and lean management, employees should not be forgotten, warn various Springer authors in the book on current studies on the future of work (Wörwag & Cloots, 2020). Because striving to make work more flexible, to break down hierarchies, to realize oneself personally and to better reconcile work and private life is about the basic needs of employees. New Work, it shouldn’t just be about optimizing work processes, but rather reacting to the new developments from an HR perspective, because New Work is a central adjustment screw for the future success of companies and the long-term satisfaction of employees. For this, however, the personnel work must

1.10  Case Study: Deutsche Telekom (DT) Offers Virtual Trade Fair Avatars

15

Fig. 1.5  Virtual Avatar of the Telekom for Trade Fairs Solutions. (Source: adapted from Deutsche Telekom (2020))

also be redesigned—and all of this in the interest of mental health (Hermeier et al., 2019).

1.10 Case Study: Deutsche Telekom (DT) Offers Virtual Trade Fair Avatars The corona pandemic has largely brought public life to a standstill for a long time. Trade and trade interactions were suspended as many countries had lockdowns and restrictions. Almost all trade fairs were cancelled. However, since they are hardly indispensable for business, companies are looking for crisis-proof options. Nothing is as valuable for business as personal relationships in B2B and B2C activities. Until the Corona crisis, trade fairs and conferences were popular and lively meeting places for product presentations and customer discussions or for interesting lectures and discussions. According to Statista database the outbreak of the coronavirus (COVID-19) in Germany postponed or cancelled more than 620 trade fairs. The question is whether trade fairs or conferences really have to be cancelled during pandemic times? What companies need in these times is a crisis-proof alternative. Again, digitization can help companies here. And in this case, in particular, the 3D technology. Rooom AG, a young, internationally active company has come up with something here. It offers various complete solutions in the area of 3D, virtual and augmented reality (VR & AR). 3D technology can also be used to create virtual trade fairs and events. For this purpose, Rooom created its own EXPO-X, a platform for virtual trade fairs, on which companies can continue to be present virtually and

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1  Introduction to the New Work Concept

without contact. In this way, companies can continue to offer their customers information and advice digitally but very personally. The young company from Thuringia has won numerous awards and received the Digital Champions Award East 2020 in the Innovative Digital Services category. The award is presented jointly by Wirtschaftswoche and Telekom. The good thing: virtual trade fairs or events set no limits to creativity as shown in Fig. 1.5. Exhibitors can communicate with customers in the form of a 3D avatar at the exhibition stand. Live chats, video conferences, readings and even lectures provide the interactive and personal factor. Even lively discussions are possible thanks to integrated communication software. Hybrid events in which real and virtual content flow together can also be designed. Another advantage that exhibitors will enjoy: the virtual exhibition stand has significantly shorter production times and is of course, more cost-effective.

References Baker, M. (2020a, June 8). 9 future of work trends post-COVID-19. Human resources. In: Gartner Online. Retrieved August 15, 2020, from https://www.gartner.com/ smarterwithgartner/9-­future-­of-­work-­trends-­post-­covid-­19/ Baker, M. (2020b). Gartner survey reveals 82% of company leaders plan to allow employees to work remotely some of the time. Now organizations must manage a mw020. Retrieved from https://www.gartner.com/en/newsroom/press-­releases/2020-­07-­14-­gartner-­survey-­reveals-­82-­ percent-­of-­company-­leaders-­plan-­to-­allow-­employees-­to-­work-­remotely-­some-­of-­the-­time Bergmann, F. (2019). New work new culture. Work we want and culture that strengthens us. Hampshire: Zero Books. Brommer, D., Hockling, S., & Leopold, A. (2019). Faszination New Work: 50 Impulse für die neue Arbeitswelt. Wiesbaden: Springer. Deutsche Telekom. (2020). Article from Lisa Maching. Bessere Aussichten für Messen und Events in Krisenzeiten. Retrieved July 27, 2020, from https://www.telekom.com/de/konzern/details/ gute-­aussichten-­fuer-­messen-­und-­events-­in-­krisenzeiten-­604048 Hackl, B., Wagner, M., Attmer, L., & Baumann, D. (2017). New Work: Auf dem Weg zur neuen Arbeitswelt. Management-Impulse, Praxisbeispiele, Studien. Wiesbaden: Springer. Hanschke, I. (2017). Agile in der Unternehmenspraxis. Fallstricke erkennen und vermeiden, Potenziale heben. Wiesbaden: Springer. Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. New York: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Hermeier, B., Heupel, T., & Fichtner-Rosada, S. (2019). Arbeitswelten der Zukunft. Wie die Digitalisierung unsere Arbeitsplätze und Arbeitsweisen verändert (FOM ed.). Wiesbaden: Springer. Kienbaum, F. (2017). Wo stehen die Unternehmen in Sachen New Work? New Work Pulse Check 2017. In Kienbaum Pulse Check. Retrieved July 25, 2020, from https://www.kienbaum.com/ de/blog/new-­work-­pulse-­check/ Lauer, T. (2020). Change management. Fundamentals and success factors. Cham: Springer. Moran, A. (2015). Managing agile. Strategy, implementation, organisation and people. Wiesbaden: Springer. Sterchi, A. (2018). Brennpunkt. Unsere Arbeitswelt auf den Kopf gestellt. In F. H. S. St. Gallen (Ed.), Interview mit Sibylle Olbert-Bock. Prof. Dr. rer. pol. Sibylle Olbert-Bock leitet das

References

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Kompetenzzentrums Leadership. Retrieved July 24, 2020, from https://substanz.fhsg.ch/ substanz-­01-­2018/brennpunkt/unsere-­arbeitswelt-­auf-­den-­kopf-­gestellt/ Väth, M. (2019). Beraterdämmerung. Wie Unternehmen sich selbst helfen können. Wiesbaden: Springer. Väth, M., & Vollmoeller, T. (2016). Arbeit—die schönste Nebensache der Welt: Wie New Work unsere Arbeitswelt revolutioniert (Dein Business). Gabal Offenbach am Main. Wörwag, S., & Cloots, A. (2020). Zukunft der Arbeit—Perspektive Mensch. Aktuelle Forschungserkenntnisse und Good Practices. Wiesbaden: Springer.

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New Work as an Opportunity for Performance Excellence

A good leader is someone who sees beyond themselves and really thinks about how they can move their organization forward by helping others to fulfill their potential. Sharon Allen

2.1 Competencies, Skills and Knowledge Competencies are a set of integrated knowledge, abilities and attributes that translate into behaviours and help define, in greater detail, what is needed to successfully perform the job. Competencies are not skills, although they are similar. Skills are learned, while competencies are inherent qualities an individual possesses, combining skills, knowledge and the ability. The term competency has two main meanings of the term have been identified, one referring to the outputs, or results of training— that is, competent performance. The other definition referring to the inputs, or underlying attributes, required of a person to achieve competent performance. Each definition has been used to describe both individual and organizational competencies (Hoffmann, 1999). The National Association of Colleges and Employers (NACE) (NACE, 2020) recently released a fact sheet defining seven core competencies that form career readiness: 1. Critical Thinking and Problem Solving 2. Oral and Written Communications 3. Teamwork and Collaboration 4. Information Technology Application 5. Leadership 6. Professionalism and Work Ethic 7. Career Management

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_2

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A good education, an excellent university degree, outstanding grades or numerous successfully completed advanced and advanced training courses are no longer enough to get hold of an anticipated career position. Today’s qualified applicants not only have a lot to offer professionally, they also require a set of crucial soft skills. Soft skills are also referred to as key competencies. They can be described as skills that can be used across professions and over the long term and do not fall within the field of professional qualifications, i.e. can be learned through studying. Rather, they are related to the personality of a person, their characteristics, traits and behaviour. Hard skills, on the other hand, are all technical knowledge and qualifications that you have been able to gain in the course of your training and professional experience, be it at university, through advanced training or a doctorate (Franke, 2020). Hard skills are teachable and most often technical skills, such as economic analysis, strategic planning or design. Soft skills fall in the interpersonal realm and include listening, team-building, and leadership development. They are not so much taught as cultivated. All of us are predisposed to be stronger in some soft areas than others. However, we can nurture those qualities over time with self-awareness, empathy, persistence and humility (Beheshti, 2018). MNCs and SMEs require in present days a combination of hard and soft skills (Ashikin, 2020). Table 2.1 shows necessary mix of important hard and soft skills in times of New Work. Hard skills are teachable and measurable abilities, such as writing, reading, mathematics or ability to use computer programs. By contrast, soft skills are the traits that make you a good employee, such as etiquette, communication and listening, getting along with other people. Hard skills needed in today’s career environment are computer literacy, hard communication skills, data analysis knowledge (big data), certification and licenses, project management or languages skills. In addition, languages play a more important role as value chains are becoming increasingly international. Finally, technical, lean and quality management skills belong to the most important hard skills.

Table 2.1  Necessary hard and soft competencies in the twenty-first century Hard competencies Computer literacy Hard communication skills Data analysis knowledge Certification and licenses Project management Languages Technical skills Lean management Quality management Source: Author’s own table

Soft competencies Team working Adaptability and agility Problem solving Negotiations skills Critical thinking and observation Leadership skills Conflict resolution Intercultural awareness Networking skills

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2.2  Competency Zone and Comfort Zone

2.2 Competency Zone and Comfort Zone A competency zone can be described as the boundaries, where a person has strengths and unique skills in a specific job environment (Helmold, 2020). Competencies are the abilities of employees to apply or use a set of related knowledge, skills, and capabilities required to successfully perform specific work functions or tasks in a defined work setting. Competencies consist of five elements and can be described as illustrated in Fig. 2.1 with knowledge, skills, application, cognition and management (Helmold, 2020). Knowledge Knowledge is a familiarity, awareness, or understanding of a certain activity or process, such as facts (propositional knowledge), skills (procedural knowledge) or objects (acquaintance knowledge). The term “knowledge” can refer to a theoretical or practical understanding of a subject. Skills Skills are the ability to perform an action with determined results and activities often within a given amount of time, energy or both. Skills can often be divided into domain-general and domain-specific skills. For example, in the domain of work, some general skills would include time management, teamwork and leadership, self-motivation and others, whereas domain-specific skills would be used only for a certain job. Skill usually requires certain environmental stimuli and situations to assess the level of skill being shown and used. People need a broad range of skills to contribute to the modern economy. As globalization and other trends are permanently changing economies, the workplaces are changing, thus also changing the necessary skills that employees must have to be able to change alongside with transforming enterprises.

Skills

Management

Knowledge Elements of Competencies

Cognition

Application

Fig. 2.1  Elements of Competencies. (Source: Author’s Source)

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2  New Work as an Opportunity for Performance Excellence

Application The development and application of job competencies to select employees who create competitive advantage is an important feature of the human resource paradigm around the world. A competency model is a cluster of competencies that specifies effective performance in a particular work environment. Possession of appropriate competencies by its workers affects organizational performance and provides competitive advantage. Human Resource Management plays an important role in giving a competitive edge to an organization. Cognition is the process by which one acquires knowledge through experience, thought and sensory input. When a person uses this cognition to integrate various inputs to create an understanding, it’s called as cognitive thinking. Cognitive skills are used to comprehend, process, remember and apply incoming information. Management Management is the process of evaluating, managing, and developing the necessary skill sets of employees. Cornerstone Succession helps organizations create and define core, leadership, and job specific skills or competencies by identifying the key abilities required to improve performance and achieve success. All employees have a competency zone including the elements and combination of skills, knowledge, application, cognition and management. In some examples and social networks, the competency zone is confused with the comfort zone. The competency zone is the zone, in which the employees feel safe and knowledgeable. Employees feel comfort and control as they have expertise in the conducted activities and work items as shown in Fig. 2.2. Anything outside this zone is unknown and causing fear to many employees. Management has to create an environment in the enterprise and give confidence to employees to get into new areas (Fear Zone). Change Management tools (Chap. 3) are suitable ways to help employees to enter the zone beyond their competencies (Kübler-Ross & Kessler, 2005). Transformation and changes are normally characterized with anxiety, resistance, excuses and panic or shock (Kotter, 2012). Change agents and coaches can help an enterprise in this situation (Helmold, 2020). Having overcome the fear zone, employees enter the learning zone. Management and Human Resources have to provide solid training and development programmes and qualification initiatives, which are based on a training and competency needs analysis. A training program allows the enterprise to strengthen those skills that each employee needs within his environment to improve. A development program brings all employees to a higher level so they all have similar skills and knowledge. The Learning Zone is associated with change, challenges, new skills and new ambitions. Learning and development programs may include the following elements: • On-the-Job Training • Off-the-Job Training • Orientation Activities • Onboarding

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2.2  Competency Zone and Comfort Zone

• • • • • • •

Technical skills development Soft skills development Products and services training Quality training Safety training Team training Coaching The next zone after the Learning Zone is the Growth Zone, in which the employees can enrich competencies, skills and knowledge. Based on the newly acquired competencies, the purpose and the objectives will automatically change. Many employees develop in this stage new long-term aspirations and visions for themselves and the companies within which they work. Companies should recognize the additional skills and make employees expert panels and create competency centres. In many cases, this stage leads to a promotion through the new skills acquired. The last zone is the excellence and outgrowth zone, in which employees develop a new mission and to realise their dreams. The new skills will empower them to perform excellently within the company (Fig. 2.2).

New Mission

Outgrowth Zone Dreams

Empowerment

New Vision Goals

Growth Zone

Objectives

Enrichment

Purpose

Learning Zone Challenges

New Skills

Change

Excuses

Resistance Anxiety

Ambitions

Fear Zone

Panic

Expertise

Competency Zone Safe Feeling

Comfort

Control

Fig. 2.2  Competency Model. (Source: Author’s Source)

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2.3 Leaving the Competency Zone (Comfort Zone) The competency zone is the area of expertise for employees and integrates the combination of competencies, skills, expertise and comfort. Although certain articles describe this area as something negative, the competency zone is the basis for reaching the next steps (Helmold, 2020). It is crucial that leaders and employees jointly create an environment in which employees strive for additional skills, competencies and expertise. Authors stress that management must apply carefully behavioural skills, change management tools and emotional intelligence in order to support employees for moving to performance excellence and outgrowth (Bonesso, Cortellazzo, & Gerli, 2020). Managers have to create a climate of courage which is located outside the employee’s comfort zone (Lauer, 2019). If people are afraid of taking a big leap, small steps should be possible and promoted. It is important to start somewhere. The zone of courage contains much less predictability than your comfort zone, so that failures can occur. Therefore, it is necessary that a failure culture allows making mistakes for personal and professional growth. Moving out of the comfort zone is bound to make employees feel a little exposed and that’s a crucial part of the process. Employees should get the necessary time to evaluate where they are and when they plan to go next. Figure 2.3 depicts the process of leaving the competency zone and moving to performance excellence.

New Mission

Outgrowth Zone Empowerment

New Vision

Dreams Goals

Growth Zone

Objectives

Enrichment

Process of utilizing the Employees´ Potential and Capabilities beyond their existing Competencies and Skills

Purpose

Learning Zone Challenges

New Skills

Change

Excuses

Resistance Anxiety

Ambitions

Fear Zone

Expertise

Competency Zone Safe Feeling

Panic

Competency and Comfort Zone

Comfort

Control

Fig. 2.3  Targeting Performance Excellence in the Outgrowth Zone. (Source: Author’s Source)

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2.4  Strategies for Reaching Outgrowth and Performance Excellence

2.4 Strategies for Reaching Outgrowth and Performance Excellence 2.4.1 5C Model for Achieving Performance Excellence The 5C Model is an ideal tool for managers and employees to drive change and to strive for performance excellence (Helmold & Samara, 2019). The model consists of five pillars as shown in Fig.  2.4. These elements are comfort, collaboration, change, challenge and competency.

2.4.2 Comfort This change in demographics and work preferences not only impacts the work culture but also the physical workplace and work comfort of employees itself. To create work-life experiences that matter to our employees, it is crucial that management and HR professionals design comfortable facility and workplaces for employees together. It is therefore important to consider how to create workplaces that enhance innovation, creativity, satisfaction without compromising cost efficiency. Utilizing New Work can be key assets to create a great workplace and will significantly increase performance (Helmold & Samara, 2019).

2.4.3 Collaboration Collaboration is the working practice whereby individual employees work together in teams or groups towards a common purpose to achieve a specific business goal. Collaboration enables individuals to work together to achieve a defined and

Competency

Challenge

Change

Collaboration

Comfort

5C-Model for Exploiting Potentials and Capabilities in New Work Concepts

Fig. 2.4  5C-Model for achieving outgrowing performance. (Source: Author’s Source)

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common business purpose. Managers must prioritize team assignments and group work. Teamwork is the collaborative effort of this constellation to achieve this common goal or to complete a task in the most effective and efficient way. This concept is seen within the greater framework of a team, which is a group of interdependent individuals who work together towards a common goal.

2.4.4 Change Change and Change Management includes all tasks, measures and activities that are intended to bring about a comprehensive, cross-departmental and far-reaching change in terms of content—to implement new strategies, structures, systems, processes or behaviours—in an organization. Change for employees is important and will be outlined in Chap. 3.

2.4.5 Challenge A challenge is something new and difficult for employees which requires great effort, passion and determination. Challenges are a good baseline for employees to move out of their competency zone to achieve a certain goal and to resolve a problem.

2.4.6 Competency Competency can be described as the combination of skills, knowledge and expertise to fullfill a certain task. Managers and HR professionals must enable employees with the right competencies to move to the zones outside their existing competencies.

2.5 Performance Excellence Through New Work Performance excellence can be defined as achieving and maintaining outstanding and superior levels of performance that meet and exceed the expectations of the stakeholders (Helmold & Samara, 2019). There is a huge number of stakeholders for any business or enterprise and to be assessed as excellent, these enterprises have to achieve an outstanding level of performance for all of their different stakeholders; employees, customers, shareholders, owners and the wider community (Zech, 2019). To achieve sustained and superior levels of excellence, it is mandatory for enterprises and organizations to permanently assess the situation and to strive for improvement by initiating continuous improvement programmes like the Toyota production system or excellence models.

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2.5  Performance Excellence Through New Work

The Excellence model allows the management of enterprises and organizations to understand the cause and effect relationships between what their organization does (actual performance), the enablers, and the results it achieves in comparison to set objectives (plan). The model comprises of three integrated components. Fundamental excellence concepts underlie principles that form the foundation for achieving sustainable excellence in any organization. These principles can be described as: • Establishing New Work Elements. • Applying Transformational Leadership. • Adding value for customers. • Creating a sustainable future. • Harnessing creativity and innovation. • Managing with agility. • Developing organizational capability. • Leading with mission, vision, inspiration and integrity. • Succeeding through the talent of people. • Sustaining outstanding results. The goal of any excellence initiative and programme must therefore be to achieve world-class excellence as illustrated in Fig. 2.5. The system is similar to the German school grading system (1 = very good, 5 = failed). Companies usually start as so-­ called “laggards” (Level 5) (Helmold & Samara, 2019). A laggard can be defined as organization that falls behind similar companies in the same industry. The next level is a “standard” performance (Level 4). Standard means in this context that enterprises have an average performance level in a certain sector. The next level is

Industry excellence (2)

Word class excellence (1)

Industry maturity and best practice (3) Industry standard (4) Industry laggard (5)

New Work as a Concept to achieve Performance Excellence

Fig. 2.5  Performance Excellence through New Work (Helmold & Samara, 2019)

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“maturity” in performance including some best practices (Level 3). After the maturity organizations will achieve the “industry excellence” (Level 2) level. At this level, performance is outstanding within the industry. The last and highest level is the world-class excellence level, in which organizations are benchmarks in terms of excellence on a global scale (Level 1) (Helmold, 2020).

2.6 Case Study: New Work in the USA at Google Flexible work practices in the USA. are increasingly becoming important to global organizations such as Google or Apple, as they enable them to achieve and sustain competitive advantage by attracting and retaining talented employees, minimizing stress and burnout, reducing turnover and absenteeism rates, increasing job satisfaction and organizational commitment, as well as improving productivity and morale (Giannikis & Mihail, 2011; Torrington, Hall, & Taylor, 2008). The telecommuting policy practiced by Google, for instance, enables employees to experience few interruptions and also to tailor their environmental contexts to meet idiosyncratic preferences that enhance their motivation, commitment and productivity (Griffin & Moorehead, 2009). Additionally, owing to flexible work arrangements, Google employees are able to adapt their hours to meet the business requirements set by management and also to work at times of the day when they are most productive in line with the “happy worker theory.” However, according to the signalling theory, managers may interpret the use of flexible work practices as a signal by employees that they are engaged in personal life responsibilities that curtail their motivation and commitment towards their organization (Leslie, Park, & Mehng, 2012). Extant literature demonstrates that “more women are entering the workforce, and the transition from single-income families to dual-career families has raised the challenge of achieving not only work–family balance, but also work–life balance” (Giannikis & Mihail, 2011, p.  417). Google has made part-time work and compressed work-week available to its employees in order to adequately meet work and family demands (Griffin & Moorehead, 2009). orms of Flexibility.

2.6.1 Flexibility as Competitive Advantage Flexible work options are numerous and can be classified into four groups: (1) flexibility in the scheduling of work hours—flex-time, compressed work-week and shift arrangements, (2) flexibility in the number of hours worked—part time and job sharing, (3) flexibility in the place of work—working at home and at a satellite location and (4) flexibility in leave arrangements—parental leave, special leave and unpaid leave (Giannikis & Mihail, 2011; Torrington et al., 2008). Google exercises flexibility in the place of work and flexibility in the scheduling of work hours by allowing their employees to telecommute. Although the work of software programmers may be extremely demanding, Google ensures that its software developers do not suffer from stress and burnout by

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allowing flexible work arrangements (Griffin & Moorehead, 2009). Google also provides its employees with fully paid maternity and parental leave, vacation days and holidays, day-time child care at Google Child Care Centre and other back-up child care centres, and free shuttle service (Schneider, 2013). As is the case in Google, flexible work programs have the capacity to build an innovative, creative and high-performance organizational culture which, according to Banfield and Kay (2008), is critical in ensuring the continued growth of the company as well as the enrichment of employees’ work- and family-related experiences. Flexibility also brings diversity of ideas and ensures that people do not resist change.

2.6.2 Benefits of New Work Using Google Corporation as a successful example, the case of google has effectively shown that the concept of a flexible enterprise and the advantages of adopting and implementing flexible work arrangements in organizational settings lead to a competitive advantage. Looking at this case, it is obvious that other enterprises must implement flexibility programs not only to gain competitive advantage, but also to ensure employees remain productive and committed to the course of the organisation while still affording adequate time to be with their families.

References Ashikin, A. (2020). Siemens: How to get hired as a fresh graduate. Ashikin Ahmad shares what she looks for when hiring fresh graduates. GradSingapore. Interview with Ahmad Ashikin, Vice-President, Siemens Building Technologies. Retrieved August 21, 2020, from https://gradsingapore.com/graduate-­careers-­advice/planning-­your-­job-­search/ siemens-­how-­to-­get-­hired-­as-­a-­fresh-­graduate Banfield, P., & Kay, R. (2008). Introduction to human resource management. Oxford: Oxford University Press. Beheshti, N. (2018). Are hard skills or soft skills more important to be an effective leader? Forbes. Retrieved September 21, 2020, from https://www.forbes.com/sites/nazbeheshti/2018/09/24/ are-­hard-­skills-­or-­soft-­skills-­more-­important-­to-­be-­an-­effective-­leader/#18b137202eb3 Bonesso, S., Cortellazzo, L., & Gerli, F. (2020). Behavioral competencies for innovation. Using emotional intelligence to Foster innovation. Basingstoke, Hampshire: Palgrave Pivot. Franke, M. (2020). AbeitsABC.  Soft Skills vs. Hard Skills—Welche sind wichtiger? Retrieved August 21, 2020, from https://arbeits-­abc.de/was-­sind-­eigentlich-­soft-­skills/#2 Giannikis, S.  K., & Mihail, D.  M. (2011). Flexible work arrangements in Greece: A study of employee perceptions. The International Journal of Human Resource Management, 22(2), 417–432. Griffin, R. W., & Moorehead, G. (2009). Organisational behaviour: Managing people and organisation. Stamford, Connecticut: Cengage Learning. Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. New York: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Hoffmann, T. (1999). The meanings of competency. Journal of European Industrial Training, 23(6), 275–286.

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Kotter, J. P. (2012). Leading change. Boston, MA: Harvard Business Press. Kübler-Ross, E., & Kessler, D. (2005). On grief and grieving: Finding the meaning of grief through the five stages of loss. New York: Scribner. Lauer, T. (2019). Change Management. Der Weg zum Ziel. Wiesbaden: Springer. Leslie, L. M., Park, T. Y., & Mehng, S. A. (2012). Flexible work practices: A source of career premiums or penalties. Academy of Management Journal, 55(6), 1407–1428. NACE. (2020). Career readiness defined. Retrieved August 29, 2020, from https://www.naceweb. org/career-­readiness/competencies/career-­readiness-­defined/ Schneider, L. (2013). Google: Company, culture and history. Retrieved from https://www.thebalancecareers.com/google-­overview-­company-­culture-­and-­history-­2071320 Torrington, D., Hall, L., & Taylor, S. (2008). Human resource management. Upper Saddle River, NJ: Prentice Hall. Zech, T. (2019). Brave new working world. Moving away from rigid structures and hierarchies: Three examples of New Work in German companies. Retrieved August 21, 2020, from https:// www.deutschland.de/en/topic/business/new-work-examples-from-companies-in-germany

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Change Management as the Trigger for New Work

Education is the most powerful weapon which you can use to change the world. Nelson Mandela

3.1 Definition of Change Management Change Management can be defined as the sum of tasks, measures and activities that are intended to bring about a comprehensive, cross-departmental and far-­ reaching change in an enterprise or organization. Change Management includes the implementation of new a mission, vision, strategies, structures, systems, processes and behaviours in an organization. The ultimate goal of change is to obtain a long-­ term favourable position in the market and to gain a sustainable competitive advantage (Helmold, 2020). Synonyms for Change management found in literature are Business Process Reengineering, Turnaround Management, Transformation Management, Lean Management, Innovation Management or Total Quality Management (Vahs, 2019). Change is increasingly determining the everyday businesses and activities of companies. In order to manage change in the most optimal way, special change management techniques are required, which can be summarized under the term Change Management (Lauer, 2019, 2020). The human factor is at the forefront of all considerations, because the implementation of change depends on the active support of employees. Since everyone has their own needs, ideas and experiences, some of which do not conform to the official company organization, there can be no simple recipe for how to successfully manage change. Rather, it is a complex process, that has to start at three points: the organization and individuals concerned, the corporate structures and the corporate culture (Lauer, 2019). Another important element in the context is the technological factor including systems,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_3

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Strategy

Culture

Mission, Vision, Corporate and Divisional Objectives

Values, Behaviour, Communication, Collaboration

Change Management

Organisation

Technology

Leadership, Structures, Processes

Systems, Methods, Routines, Instruments

Fig. 3.1  Elements of Change Management. (Source: Author’s source) Exogeneous Triggers for Change • • • • • • • •

Governmental Reasons Laws and Regulations Economic Impacts Competition Market Developments Innovations Trends Consultants

Endogeneous Triggers for Change • • • • • • •

Management Employees Banks and Investors Suppliers Customers Other Stakeholders Production and Service Requirements

Fig. 3.2  Factors for Change Management. (Source: Author’s source)

routines, methods and instruments (Helmold & Samara, 2019). Figure 3.1 summarizes the elements of change management.

3.2 External and Internal Reasons for Change The need for corporate change can be caused both externally and internally. Externally, companies face an increasingly dynamic environment that requires constant adjustment of their own structures if they want to be successful in sales and also in the preceding procurement markets. The external change is caused by the market environment, politics, technology, ecology, the overall economy or institutions, as well as in the markets themselves, for example by increasing competition. To explain internal change, the metaphor of human development is used, which— like corporate development—is characterized by a succession of growth, crisis and higher maturity. There are so-called life cycle models for entrepreneurial change that exemplify the typical development phases. Change is often necessary, however, because companies are successful in exaggerating the offensive spirit of their efforts. Here too, the connection to the human psyche is established and this phenomenon is analogously referred to as “burn-out”. Figure  3.2 outlines triggers for change from outside (exogeneous triggers) and inside of the organization (endogeneous

3.3  Change Management Concepts

33

triggers). Exogeneous triggers can be described as governmental requirements, new laws, regulations, economic impacts, competitive reasons, market developments, innovations or the advice from consultants. Endogeneous triggers are caused by internal stakeholders, such as managers, employees, shareholders, banks, investors or customers.

3.3 Change Management Concepts 3.3.1 Change Management Concept of Kurt Lewin The Kurt Lewin’s model (unfreezing, changing and refreezing) is widely accepted in psychology for implementing change. The implementation of change involves the current state of organization have to be changed into a desired state, but this will not occur quickly but simultaneously. Kurt Lewin’s Three Stages model or the Planned Approach to Organizational is one of the cornerstone models which is still relevant in the present scenario. Lewin, a social scientist and a physicist, during early 1950s propounded a simple framework for understanding the process of organizational change known as the Three-Stage Theory which he referred as Unfreeze, Change (Transition) and Freeze (Refreeze). According to Lewin, change for any individual or an organization is a complicated journey which may not be very simple and mostly involves several stages of transitions or misunderstandings before attaining the stage of equilibrium or stability. For explaining the process of organizational change, he used the analogy of how an ice block changes its shape to transform into a cone of ice through the process of unfreezing. Lewin’s model is shown in Fig. 3.3. Stage 1—Unfreezing  This is the first stage of transition and one of the most critical stages in the entire process of change management. It involves improving the readiness as well as the willingness of people to change by fostering a realization for moving from the existing comfort zone to a transformed situation. It involves making people aware of the need for change and improving their motivation for accepting the new ways of working for better results. During this stage, effective communication plays a vital role in getting the desired support and involvement of the people in the change process. Stage 2—Change  This stage can also be regarded as the stage of Transition or the stage of actual implementation of change. It involves the acceptance of the new ways of doing things. This is the stage in which the people are unfrozen, and the actual change is implemented. During this stage, careful planning, effective communication and encouraging the involvement of individuals for endorsing the change is necessary. It is believed that this stage of transition is not that easy due to the uncertainties or people are fearful of the consequences of adopting a change process.

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3-Phase-Model by Kurt Lewin New Work Concepts

Unfreezing • Prepare for New Work Concepts • Initiate necessary Changes • Run Analysis how effective Changes are • Lead Discussion with Employees and managers

Moving • Continue Changes • Name responsible People for Change Activities and Projects • Monitor the Process • Give Guidance on Changes

Freezing • Get accustomed to new Situation • Avoid Relapse: Create New Work Structure and System • Establish Balance • Keep Observations • Implement Deviations if necessary

Fig. 3.3  Elements of Kurt Lewin’s Three-Phase Model of Change Management. (Source: Author’s source)

Stage 3—Freeze (Refreezing)  During this stage, the people move from the stage of transition (change) to a much more stable state which we can regard as the state of equilibrium. The stage of Refreezing is the ultimate stage in which people accept or internalize the new ways of working or change, accept it as a part of their life and establish new relationships. For strengthening and reinforcing the new behaviour or changes in the way of working, the employees should be rewarded, recognized and provided positive reinforcements, supporting policies or structures can help in reinforcing the transformed ways of working.

3.3.2 Change Management Curve of Elisabeth Kübler-Ross In 1969 Kübler-Ross described five stages of grief in her book “On Death And Dying”. These stages represent the normal range of feelings people experience when dealing with change in their lives or in the workplace. All change involves loss at some level. The “Five stages” model is used to understand how people react to change at different times (Kübler-Ross & Kessler, 2005). The stages were first observed as a human response to learning about terminal illness. They have also been used to understand our individual responses to all kinds of change. The five stages of grief Kübler-Ross observed and wrote about are: Denial, Anger, Confusion, Crisis and Acceptance. The model has been extended by several scientists and change management experts with Re-Orientation and Integration (Helmold, 2020) as shown in Fig. 3.4. The Change Curve is a popular and powerful model used to understand the stages of personal transition and organizational change. It helps you predict how people will react to change, so that you can help them make their own personal transitions, and make sure that they have the help and support they need.

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Performance and Motivation

3.3  Change Management Concepts

Open and hidden Resistance

6. Re-Orientation

Rejection

Shock 1. Denial

7. Integration

2. Anger Frustration

5. Acceptance

3. Confusion

Valley of the Tears

4. Crisis

Time Fig. 3.4  Change Management Curve with Seven Phases. (Source: Author’s Source, adopted from Kübler-Ross)

Step 1—Denial and Shock  It is said that every change at the beginning is difficult. Change is a shock to people, as they have get rid of standard and beloved habits and behaviours. Transformation and changes scare many employees, who ask questions like: • • • • • • • • • •

What’s new for me? Where is my path going? Will I keep my job? Why do we need a change at all? Are there alternatives? What is the goal of the change? What does this change bring to me (the person concerned)? What does this change mean for me and my career? What do I need for this change? How and where will I be supported in this change and get help? Many questions come to mind of those affected. It is particularly important here for the company, undergoing a transition and transformation process, to have a clear and appropriate communication strategy. Fears and shock not only block productivity and creativity, in the worst case they can paralyse an entire company. Open, honest and transparent communication via various channels can minimize anxiety and shock. Communication here is in no way limited to the intranet. Managers also

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3  Change Management as the Trigger for New Work

have to pick up their employees and colleagues; in groups and one-on-one discussions, barriers can be reduced or prevented immediately before they arise. Step 2—Anger  If there was good communication, open and transparent reporting right at the start of the change, the anger and rejection factor will be optimally lower. However, the shock is transitioning to anger. In this phase change managers hear repeatedly: • We have never done this before. • I don’t want this. • I don’t need it. • It does not make sense. • It is not good for me. In this phase companies often have a strong wind of rejection and resistance. According to change management experts, resistance can take place actively as well as passively, verbally or nonverbally. Resistance refers to the activities and the action of individuals or groups who oppose something that should be agreed as an objective in the negotiation. Resistance can be shown in a visible and open way (open resistance) or in a more subtle and disclosed way (hidden resistance). Resistance in negotiations normally come from the negotiation opponents, but can also come from individuals or groups of the same negotiation side (Helmold, Dathe, & Hummel, 2020). Resistance is a type of opposition and can be broken through analytically applying emotions or warning tactics. The most difficult problem is to identify signals of resistance, when the employees or people do not openly, formally or informally convey their concerns and resistance. In such case nonverbal analytical techniques help to identify signals of opposition (Helmold, Dathe, & Hummel, 2019). Resistance occurs verbally or nonverbally in negotiations in various forms, which in most cases is unaware of the persons involved. Negotiations through language (verbal) or gestures or facial expressions (nonverbal, i.e. behaviour or facial expression) must be negotiated (Hilsenbeck, 2004). Open Resistance Open resistance is characterized by the fact that it is deliberately exercised by opponents of the opposition and thus also connects a goal. Recognizing open resistance is relatively simple, as expressions and behaviours are openly visible: • Open contradiction (examples: “I disagree ...”) • Open rejection (example: “I cannot agree with your proposal ...”) • Open intervention (example: “I cannot accept your proposal, so I suggest that ...”) • Rejection by obvious shaking of the head. • Rejection by gestures with the poor or index fingers. Normally, the reasons for open resistance have a rational cause, which can be discussed with those affected and whose overcoming all interested parties have an interest (Hilsenbeck, 2004). This form of resistance is usually constructive, so that dealing with open resistance is possible. To break resistance or to refute and mitigate it with a fact-based argumentation can be a suitable strategy here. In this way,

3.3  Change Management Concepts

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the energy which the resisting persons have invested in their resistance can be channelled in the sense of reaching the goals of the transformation, or in simple terms. Hidden Resistance Much more difficult is dealing with covert or hidden resistance. In this context, people, who are resisting, usually have no interest in being recognized (Hilsenbeck, 2004). For personal or tactical reasons, they act out of the hidden or the second row. Their interests are mostly destructive, that is, they want to prevent something without being recognized as the causer. Paradoxically, in many cases, resisting parties are not even aware of their resistance. This makes the handling of this form of resistance even more difficult (Volk, 2018). If the covert resistance is not recognized in time, the entire outcome of the transformation and change may be at stake. Signals for hidden resistance in transformation processes can be: • Comments and statements with limitations (example: “I understand your point of view, but ...”) • The absence of important decision makers (alpha types) or influencing persons (beta types). • The late appearance in change management meetings of important decision makers (alpha types) or influencing persons (beta types). • The permanent postponement and of meeting and delay of tasks due to alleged scheduling difficulties. • Nonverbal signals of resistance such as mental absence or disinterest. The demand for perfect solutions. • The demand that we move as a negotiator first. • The extensive and long consideration and discussion of relatively unimportant special cases. • The general agreement with simultaneous registration of reservations, which should be clarified later. Handling Resistance Resistance must be recognized in transformational processes and it is important that managers determine and identify the motives of the resistance. With open and rational resistance, counterarguments and the reformulation of one’s own goals can lead to the refutation of the resistance and the achievement of a result. For questions that do not play a key role in the transition, managers can also ignore the resistance and respond to the employee’s demands or tackle them later. If the ram state is not resolvable, and this is at the core of the transition, there will probably be no bargaining success. Unconscious or hidden resistance is more difficult to recognize as the examples demonstrate: detect resistance, understand the resistance, weigh the resistance and finally break resistance. It is advisable to listen to the resistance of the other side and to understand the motives (Volk, 2018). A change agent can help by listening to the fear and concerns of the employees. For those employees, who are eventually not willing to follow the change, it is important to break resistance. Breaking resistance can be done via certain patterns like warning, making concessions, rationality, conviction by arguments, rational emotions or appeal to mutual benefits. Warning means to have a facts-based signal (verbally or nonverbally) that the change and transformation will be pursued for the sake of the company. Without

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that change, the company may not succeed in the long-term. A warning is factual and objective and should be phrased with good argumentation and clear message. In ultimate cases it can be the dismissal of employees. Another way could be the granting of small and individual minor concessions to the negotiation opponent. When understanding the motives of employees, it could be possible to identify areas to give in that area of importance for employee. Deflection might also be a way to break such resistance (Helmold et al., 2019). Table 3.1 gives recommendations how to handle resistance successfully. Step 3—Confusion and Frustration  The change curve is now going down dramatically steeply. After the rejection, those affected experience severe frustration and confusion. It descends rapidly downhill towards a state of a crisis, the valley of tears. At this point, many employees come to the point of rational acceptance. Employees resign to the situation, but still argue against it. Regardless of the change, a corresponding position from the management should be available in this stage. This should openly allow problems, fears or simply frustration to be unloaded. A change agent can help employees to cope with the fears. In this way, the confusion and frustration can be bundled and quick solutions offered. It should be a trained change manager at least or a change expert or systemic consultant. The insight that the change also creates new opportunities and opportunities does not exist here yet. Step 4—Crisis—Valley of the Tears  From a purely rational perspective, employees already know and understand at this stage, that that there is no way of return. The path the enterprise has taken is irreversible. At this stage, affected employees affected reach an emotional low. They gave everything, climbed the inner walls, were annoyed and fought so hard against the change, but they did not succeed. We all know the feeling when the knot opens and the light at the end of the tunnel becomes visible. Employees can now finally and emotionally accept the change in order to proceed with the transformation.

Table 3.1  Recommendations for breaking resistance Understand and recognition of resistance Breaking resistance with factual arguments Breaking resistance through warnings Breaking resistance by concessions in unimportant areas When getting resistance, change place and make breaks When facing resistance deflection can help Source: Author’s Source

3.3  Change Management Concepts

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Step 5—Acceptance and Try-it-Out  After the valley of tears, those employees affected are fresh and free. The mind is cleansed, the mindset opens for something new. The person concerned actively wants to see how and what is possible, what happens and where the journey is going. The first hesitant statements can be: • Maybe there is something good. • My everyday life could improve. • It’s not as difficult as I thought! • It does not look as bad as I thought. • I understand now the need for change. In this stage, Management should offer support to those affected in this phase through change agents and frequent meetings. It is now important to keep the employees encouraged in trying out, testing and playing with the new tools or systems. The more help is offered through all phases, the better, smoother and faster the transition will proceed. Step 6—Reorientation  After many test runs, trying out and reviewing the documents, those affected increasingly come to realize that it is time for a new start. Added value is actively recognized, the light at the end of the tunnel shows the first outline of the landscape. In this stage managers can now go to the full integration. Step 7—Integration  In the last stage, the change has been integrated into the company. New tools, methodologies or processes are a matter of course in everyday life. The question of “why” no longer arises. Those affected live and communicate added value openly. Formerly affected people become ambassadors and helpers for colleagues who are still in the midst of the change curve. These positive influences support the process and the working atmosphere.

3.3.3 Change Management Phase Model of Kotter Kotter analyzed that 70% of all change projects fail, most of them in the initial phase. This is the research result of John P. Kotter, an expert in the field of change management. Two factors are responsible for the low success rate: Not the technology, but the human being is the greatest obstacle to change. Based on this knowledge, Kotter developed the eight-step model in 1996. The theory shows eight phases of change management and gives managers tips on how to successfully drive change. The focus of the model is communication—from person to person. The eight-step model by John P. Kotter is a further development of the popular three-­ phase model by Kurt Lewin. According to the theory, changes in companies can only be successful if they go through all eight stages of change and are intensively accompanied by managers (Kotter, 2012). The eight steps are outlined in Fig. 3.5.

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3  Change Management as the Trigger for New Work

1. Feeling and Situation of Urgency 2. Transformational Leadership Coalition 3. Mission, Vision and Strategic Objectives

4. Communication of Mission, Vision and Goals 5. Clearing of Obstacles and Roadblocks 6. Establishment of short-term Objectives and Success 7. Consolidation of short- & long-term Objectives 8. Integration of Change into Corporate Culture Fig. 3.5  Change Management Concept of Kotter. (Author’s Source)

1. Show Urgency Raise awareness of the urgency of change among both managers and employees. For example, develop scenarios that could occur if there is no change. Discuss with your managers and employees and make strong arguments. 2. Build Leadership Coalition Build a good leadership team by getting trend-setting people for your idea and bringing them together under the flag of change. Make sure you have a good mix of people from different departments and with different skills. 3. Develop Mission, Vision and Strategy Wrap up a strong vision and concrete strategies with which you want to achieve the goal. Communicate this in a well-prepared and strong speech. An overarching goal for the company helps to implement change. 4. Communicate the Mission, Vision and Strategies Constant drip hollows the stone: Do not be afraid to communicate the vision to the managers and employees again and again. This creates trust and increases motivation. 5. Clear Obstacles Are there structures in your company that slow down change? Take a close look at the status quo and get rid of unfavourable organizational structures, work processes and routines.

3.3  Change Management Concepts

41

6. Make Short-Term Successes Visible Do not set goals that are too time-consuming and costly to begin with, but also define intermediate goals that can be reached quickly. Employees who achieve these goals should be rewarded. 7. Continue Driving Change After each goal is achieved, analyze what went well and what could have gone better. Always develop new ideas and goals and bring new employees to your management team. 8. Anchoring Changes in the Corporate Culture Anchor the achieved goals firmly in your corporate culture. Only after this has been achieved can Kotter speak of a successful change management process. Since Kotter’s 8-phase model gives specific instructions for successful change management, it can serve you well in practice. Critics complain that Kotter’s model does not explain how to act in the event of setbacks and that initiatives by employees or so-called “bottom-up” perspectives are ignored. However, like no other change management model, it shows the importance of good communication for sustainable change (Kotter, 2012).

3.3.4 ADKAR Change Management Model The ADKAR change management model was created by Jeffery Hiatt in 1996. The change management concept It is a bottom-up method which focuses on the individuals behind the change (Hiatt, 2006). It’s less of a sequential method and more of a set of goals to reach, with each goal making up a letter of the acronym. By focusing on achieving the following five goals, the ADKAR model can be used to effectively plan out change on both an individual and organizational level: • Awareness (of the need to change). • Desire (to participate and support the change). • Knowledge (on how to change). • Ability (to implement required skills and behaviours). • Reinforcement (to sustain the change). Hiatt sees the change of the individual as the basis for sustainable corporate success. The transformation of an entire company can only succeed through individual changes. Thus, the transformation can be understood as the sum of many small changes. A change is only successful when employees adopt new tools, techniques and processes, fully implement them and maintain them in the long term. Then the ROI, the “Return on Investment”, can also be clearly displayed. When enterprises and its managers drive individual changes, the organization will also master organizational changes (Hiatt, 2006). There is no need for complex, time-consuming methods, which are actually a science in themselves! As a change manager and change agent, companies need an easy-to-understand, simple and comprehensive tool or method with which they can quickly identify gaps and barriers in the change process of the respective employee. Only then management will be able to lead and guide the employees through the change in a targeted manner (Hiatt, 2006).

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3  Change Management as the Trigger for New Work

3.3.5 McKinsey 7s Model McKinsey 7s model is a tool (Fig. 3.6) that analyses firm’s organizational design by looking at seven key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives (McKinsey, 2020). McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools. It sought to present an emphasis on human resources (Soft S), rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance. The goal of the model was to show how seven elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be aligned together to achieve effectiveness in a company. The key point of the model is that all the seven areas are interconnected and a change in one area requires change in the rest of a firm for it to function effectively. Figure 3.5 outlines the seven categories in the McKinsey model, which represents the connections between seven areas and divides them into “Soft Ss” and “Hard Ss”.

Strategy

Skills

Structure

Subordinate Goals Shared Values Style

Systems

Staff

Fig. 3.6  Communication of Change Management. (Source: Author’s Source, adapted from McKinsey)

References

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The shape of the model emphasizes interconnectedness of the elements (Helmold, 2020).

3.4 Case Study: Change Management in Nissan The three stages of Change Management of Kurt Lewin can be aptly explained through the aid of an example of Nissan Motor Company which was on the stage of bankruptcy due to the issues of high debts and dipping market share. During that period, Carlos Ghosn took charge as the head of the Japanese automaker who was faced with the challenge of implementing a radical change and turning around the operations of Nissan, yet by keeping the resistance to change under control which was inevitable under such circumstances by forming cross-functional teams to recommend a robust plan of change in different functional areas. For facing the business challenges, he developed a change management strategy and involved the employees in the process of change management through effective communication and reinforcement of desired behaviours. For refreezing the behavioural change of the employees, he introduced performance-based pay, implemented an open system of feedback for guiding and facilitating the employees in accepting the new behaviour patterns at work.

References Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. Cham: Springer. Helmold, M., Dathe, T., & Hummel, F. (2019). Erfolgreiche Verhandlungen. Best-in-Class Empfehlungen für den Verhandlungsdurchbruch. Wiesbaden: Springer. Helmold, M., Dathe, T., & Hummel, F. (2020). Successful international negotiations. A practical guide for managing transactions and deals. Cham: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Hiatt, J. (2006). DKAR: A model for change in business, Government and Our Community. New York: Prosci Learning Center Publications. Hilsenbeck, T. (2004). Verhandeln. Handbuch von Dr. Thomas Hilsenbeck. Retrieved May 30, 2018, from http://www.thomas-­hilsenbeck.de/wp-­content/uploads/Dr-­Th-­Hilsenbeck-­ Handbuch-­Verhandeln-­Vers-­5_0.pdf Kotter, J. P. (2012). Leading change. Brighton, MA: Harvard Business Press. Kübler-Ross, E., & Kessler, D. (2005). On grief and grieving: Finding the meaning of grief through the five stages of loss. New York: Scribner. Lauer, T. (2019). Change management. Der Weg zum Ziel. Wiesbaden: Springer. Lauer, T. (2020). Change management. Fundamentals and success factors. Cham: Springer. McKinsey. (2020). 7-S-Framework. Retrieved August 21, 2020, from https://www. mckinsey.com/business-­f unctions/strategy-­a nd-­c orporate-­f inance/our-­i nsights/ enduring-­ideas-­the-­7-­s-­framework Vahs, D. (2019). Organisation: Ein Lehr- und Managementbuch. Stuttgart: Schäfer Poeschel. Volk, H. (2018). Emotionale Dynamik eines Gespräches verstehen. Was den alltäglichen Wortwechsel entgleiten lässt. In Beschaffung aktuell (pp. 70–71) Retrieved 6, 2018.

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Culture Change Towards New Work Concepts

Leadership is the capacity to translate vision into reality. Warren Bennis

4.1 Organizational Culture and New Work The world of work has been significantly impacted by the COVID-19 pandemic and is undergoing fundamental and structural changes (Lauer, 2020). In addition, global trends, fierce competition on a global scale and climate change are changing the work environment permanently (Helmold, 2020). New Work is the epitome of this transformation. There are many triggers for this development. Digitization, connectivity and globalization as well as demographic change are among the causes of the change in the world of work. The question of how we deal with the megatrend New Work is becoming increasingly important for companies (Evsan, 2020). The reason why is that companies have to compete not only between themselves, they also have to compete for talents and employees. New Work measures and concepts are one opportunity to win this battle for talents (Bergmann, 2019). New technologies, digitization, automation and comprehensive networking mean that certain professions are becoming superfluous. Industrial production has changed radically in recent decades. The new way of thinking, the desire for change, the desire for meaning, personal development but also digitalization and thus also the developments in the field of artificial intelligence will pose more and more people in the “old working world” the question of what they want to do in the future (Bergmann, 2019). The observer quickly ends up with the questions: • Why do we actually do what we do for work? • Why did we decide to go this career path? • Why did we choose a technical or commercial profession?

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_4

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• Do we really want to become an industrial mechanic because we have always been interested in the manufacture, maintenance and monitoring of technical systems? • Or do some people rather become industrial mechanics because there is simply the job of an industrial mechanic? When parents ask their children what they want to be when they grow up, they never give answers like “I want to work on the assembly line” or “I want to become a process manager”. This is where the original concept of New Work comes in. New Work concepts and processes have positive effects on the performance of the organization in terms of quality cost, delivery and other improvements. However, it is necessary to establish organizational infrastructures which required for effective and efficient implementation and continuation (Fatma, 2015). That means that the change towards a New Work culture, lean structures and transformational leadership must be implemented into the Corporate Culture of any enterprise and organization (Helmold, 2020; Lauer, 2020). The Cultural Web, developed by Gerry Johnson and Kevan Scholes in 1992, provides one such approach for looking at and changing your organization’s culture (Johnson & Scholes, 1997). Using it, one can expose cultural assumptions and practices, and set to work aligning organizational elements with one another, and with your strategy. These infrastructures must integrate cultural elements as illustrated in Fig. 4.1. The challenge to implement and sustain new work and lean management

Symbols

Power Structures

Stories

Organisational Culture New Work Rituals and Routines

Structures

Control Systems

Fig. 4.1  New Work Cultural Web. (Source: Author’s source, adapted from Johnson & Scholes, 1997)

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processes lies in the need to identify the organizational culture infrastructure that will allow this system to operate well in the new organizational contexts. The values and norms that underlie lean processes may create conflict with the culture that already exists within the organization; such divergence retards adoption and performance (Helmold & Samara, 2019). Johnson and Scholes identified six distinct but interrelated elements which contribute to what they called the “paradigm”, equivalent to the pattern of the work environment, or the values of the organization. They suggested that each may be examined and analysed individually to gain a clearer picture of the wider cultural issues of an organization. The seven contributing elements (with example questions used to examine the organization at hand) are as follows: • Organizational Culture • Stories and Myths • Rituals and Routines • Symbols of New Work • Control Systems • Organizational Structures • Power Structures

4.1.1 Stories and Myths These are the previous events and happenings, both accurate and not, which are discussed by individuals within and outside the enterprise. This element deals with the questions, which events and people are remembered by the company or not. It indicates what the company values, and what it chooses to immortalize through stories. Questions concerning the stories and myths are: • What form of company reputation is communicated between customers and stakeholders? • What stories do people tell new employees about the company? • What do people know about the history of the organization? • What do these stories say about the culture of the business?

4.1.2 Rituals and Routines The Rituals and Routines category refers to the daily actions and behaviours of individuals within the organization. Routines indicate what is expected of employees on a day-to-day basis, and what has been either directly or indirectly approved by those in managerial positions. Questions in this category are: • What do employees expect when they arrive each day? • What experience do customers expect from the organization? • What would be obvious if it were removed from routines? • What do these rituals and routines say about organizational beliefs?

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4.1.3 Symbols This element, Symbols, deals with the visual representation of the company; how they appear to both employees and individuals on the outside. It includes logos, office spaces, dress codes and sometimes advertisements. Questions are: • What kind of image is associated with the company from the outside? • How do employees and managers view the organization? • Are there any company-specific designs or jargon used? • How does the organization advertise itself?

4.1.4 Control Systems Control Systems are the systems and pathways by which the organization is controlled. This can refer to many things, including financial management, individual performance-based rewards (both measurement and distribution) and quality-­ control structures. Questions that must be tackled in this respect are: • Which processes are strongly and weakly controlled? • In general, is the company loosely or tightly controlled? • Are employees rewarded or punished for performance? • What reports and processes are used to keep control of finance, etc.?

4.1.5 Organizational Structures This aspect refers to both the hierarchy and structure designated by the organization for the concept of New Work. Alongside this, Johnson and Scholes also use it to refer to the unwritten power and influence that some members may exert, which also indicate whose contributions to the organization are most valued by those above them. • How hierarchical is the organization? • Is responsibility and influence distributed in a formal or informal way? • Where are the official lines of authority? • Are there any unofficial lines of authority?

4.1.6 Power Structures This element is referring to the genuine power structures and responsible individuals within the organization. It may refer to a few executives, the chief executive officer (CEO), board members, or an entire managerial division. These individuals are those who hold the greatest influence over decisions, and generally have the final say on major actions or changes. • Who holds the power within the organization? • Who makes decisions on behalf of the company?

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• What are the beliefs and culture of those as the top of the business? • How is power used within the organization?

4.1.7 Cultural Web to Change As above, the first step of changing the culture of the organization towards New Work is to analyse elements of the Cultural Web as they currently exist. The next step is to repeat the process, examining each element, but this time considering what one would like the culture, beliefs and systems to be. This can then subsequently be compared with the ideal culture, and the differences between the two can be used to develop achievable steps towards change within the company. One will likely only then realize the true strengths and weaknesses of the organization’s current culture, what the various hindrances are to growth, and how to go about changing specific elements to develop and achieve success. A new strategy can evolve from this by looking at introducing new beliefs, and prioritizing positive reinforcement of current, successful ones. Hopefully, by integrating this system of analysis, managers can find themselves able to break free of ritual and belief systems within a company to achieve real change and innovation.

4.2 Need for Change of Organizational Culture Successful organizations do not prosper by devoting a ruthless approach to chip away at costs, relentlessly reducing all decision-making to a reduction in head count. The purpose of a New Work or lean culture change is to secure the future of the entity by uniting its people to deliver to the voice of the customer. New Work, lean Culture Change and transformational leadership drive organizational success by motivating employees, adding more value to existing consumers and winning loyalty Naranjo-Valencia et al. (2011), Shim & Steers (2012). It is about developing resilient service provision, developing core staff competencies and attracting and retaining the best people. The New Work Culture reverses the polarity of the organization shifting from a fire-fighting mode to a planning mode, where prevention of problems rather than reacting after the event of failure becomes the norm. Healthy, positive, organizational Cultures are characterized by a long-term continuity perspective, with a focus on tactics to resolve immediate short-term problems. The dominant culture should support and reward cross-organizational working. Implementing New Work, new Leadership or lean Thinking is a cultural change that requires leadership because in the end it’s all about people. Here are 10 guidelines your leader can do right now to change the culture: Challenge People to Think If you are not thinking, you’re not learning new things. If you’re not learning, you’re not growing—and over time becoming irrelevant in your work. The most successful leaders understand their colleagues’ mindsets, capabilities and areas

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for improvement. They use this knowledge/insight to challenge their teams to think and stretch them to reach for more. Lead by Example Leading by example sounds easy, but few leaders are consistent with this one. Successful leaders practice what they preach and are mindful of their actions. They know everyone is watching them and therefore are incredibly intuitive about detecting those who are observing their every move, waiting to detect a performance shortfall. Take Lots of Leaps of Faith Making a change requires a leap of faith. Taking that leap of faith is risky, and people will only take active steps towards the unknown if they genuinely believe—and perhaps more importantly, feel—that the risks of standing still are greater than those of moving forward in a new direction. Making a change takes lots of leaps of faith. Create an Environment Where It Is Ok to Fail Failure should be encouraged! That’s right. If you don’t try, you can’t grow; and if growth is what you seek, failing is inevitable. There must be encouragement to try and it’s ok if you try and it doesn’t work. An environment where you can’t fail creates fear. Eliminate Concrete Heads “Concrete Heads” is the Japanese term for someone who does not accept that the organization must be focused on the elimination of waste. People feel threatened by the changes brought about by lean. As waste and bureaucracy are eliminated, some will find that little of what they have been doing is adding value. The anxiety they feel is normal and expected. To counteract this, it is critical that people are shown how the concept of work needs to change. Be a Great Teacher Successful leaders take the time to mentor their colleagues and make the investment to sponsor those who have proven they are able and eager to advance. They never stop teaching because they are so self-motivated to learn themselves. Show Respect to Everyone Everyone desires respect. Everyone. Regardless of your position or power, ensure you show everyone respect. Everyone wants to be treated fairly. Motivate Your Followers Transformational leaders provide inspirational motivation to encourage their followers to get into action. Of course, being inspirational isn’t always easy. Some ideas for leadership inspiration include being genuinely passionate about ideas or goals, helping followers feel included in the process and offering recognition, praise and rewards for people’s accomplishments. Develop a True Team Environment Create an environment where working as a team is valued and encouraged; where individuals work together to solve problems and help move the organization forward. Individuals who will challenge each other and support each other make teams more successful.

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Encourage People to Make Contributions Let the members of your team know that you welcome their ideas. Leaders who encourage involvement from group members has shown to lead to greater commitment, more creative problem solving and improved productivity. Constant change is a business reality and organizations must continually adapt to their environments to stay competitive or risk losing relevance and becoming obsolete. For each change, leaders must define it, create a vision of the post-­ change world, and mobilize their teams to make it. Fundamentally, a change of culture occurs when people start behaving differently as a result of a change in the climate of the organization. There are many different models of how an organizational culture is shaped by the prevailing climate and how it can be assessed. Leaders who protect the status quo through control must surrender to change in order to secure the future for their organization. Don’t be the leader who rewards herd mentality, and me too thinking. Don’t be the leader who encourages people not to fail or not to take risks. Be the leader who both models and gives permission to do the exact opposite of the aforementioned—be a leader who leads. The culture of an organization is learnt over time. It can be taught to new employees through formal training programs but is more generally absorbed through stories, myths, rituals, and shared behaviours within teams. Organizational culture will impact positively or negatively on everything you try to do whether you want it to or not.

4.3 Impacts of New Work Culture The idea of New Work focuses on the philosophical question of human freedom and requires a significant cultural change in any organization. With the New Work concepts, the previous job systems have come ultimately to their end (Bergmann, 2019). In the following there are the major impacts of a cultural change towards New Work: • Classic concepts of work—in terms of time, space and organization—have to be rethought. • You will learn what New Work means and which opportunities it brings and what you should consider as a manager. • The changes in the world of work are already more real than ever. • The classic “nine-to-five job” will soon be a thing of the past in most industries. • The ties to fixed workplaces as well as standardized times and organizational structures continue to dissolve. • The work of the future is flexible and project-based. • More and more people are working as freelancers (solopreneurship). • The old structures of hierarchies, planning and error avoidance are unsuitable for the fast-moving world. • Employees need an informal exchange of information. • Digitization supports and frees people from routine tasks and offers more functions through applications. • Digitization opens up the possibility of communication with one another.

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• This increases the innovative strength in companies but also in society exponentially. • At the same time, this also causes unrest. • The boundaries between work and leisure are blurring. This also causes unrest. • Solving this task correctly means new work. • So New Work is not a program, not a process, but a question of attitude, culture and leadership. • It is about modern leadership, which is characterized by eye level and appreciation and more by coaching and less by announcement. • New work means considering the balance of interests. • In the course of the multifaceted change in the world of work, the question is how we innovatively define and organize work in order to make a progressive contribution to corporate strategy.

4.4 Case Study: Toyota Toyota Motor Corporation’s organizational culture defines the responses of employees to challenges the company faces in the market. As a global leader in the automobile industry, Toyota uses its organizational culture to maximize human resource capabilities in innovation (Helmold, 2020). The company also benefits from its organizational culture in terms of support for problem solving. The different features or characteristics of Toyota’s organizational culture indicate a careful approach in facilitating organizational learning. The firm undergoes considerable change once in a while, as reflected in the change in its organizational structure in 2013. Toyota’s organizational culture highlights the importance of developing an appropriate culture to support global business success. Toyota’s organizational culture effectively supports the company’s endeavours in innovation and continuous improvement. An understanding of this corporate culture is beneficial for identifying beliefs and principles that contribute to the strength of the firm’s business and brands. Following its reorganization implemented in 2013, Toyota’s organizational culture underwent corresponding change. Prior to 2013, its organizational culture emphasized a sense of hierarchy and secrecy, which translated to employees’ perception that all decisions must come from the headquarters in Japan. However, after 2013, the characteristics of Toyota’s organizational culture are as follows, arranged according to significance: • Teamwork • Continuous improvement through learning • Quality • Secrecy Teamwork. Toyota uses teams in most of its business areas. One of the company’s principles is that the synergy of teamwork leads to greater capabilities and success. This part of the organizational culture emphasizes the involvement of employees in their respective teams. To ensure that teamwork is properly integrated in the organizational culture, every Toyota employee goes through a teambuilding

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training program. Toyota’s organizational culture facilitates the development of the firm as a learning organization. A learning organization utilizes information gained through the activities of individual workers to develop policies and programs for better results. Toyota’s organizational culture highlights learning as a way of developing solutions to problems. In this way, the company is able to continuously improve processes and output with the support of its organizational culture. Quality is at the heart of Toyota’s organizational culture. The success of the company is typically attributed to its ability to provide high quality automobiles. To effectively integrate quality in its organizational culture, the firm uses Principle #5 of The Toyota Way, which says, “build a culture of stopping to fix problems, to get quality right the first time”. The Toyota Way is a set of principles that defines the business approaches used in Toyota’s organizational culture has a considerable degree of secrecy. However, the level of secrecy has declined in recent years following the reorganization of the company in 2013. Before 2013, information about problems encountered in the workplace must go through the firm’s headquarters in Toyota City, Japan. However, following the reorganization, the company’s organizational culture now does not emphasize secrecy as much. For example, problems encountered in US plants are now disseminated, analysed, and solved within the North American business unit of Toyota. The characteristics of Toyota’s organizational culture enable the company to continue growing. Innovation is based on continuous improvement through learning. Quality improvement and problem solving are achieved through the activities of work teams. However, the secrecy feature of Toyota’s organizational culture presents possible drawbacks because it reduces organizational

Fig. 4.2  Workshop in China. (Source: Author’s Source)

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flexibility in rapid problem solving. Figure 4.2 shows a Lean Workshop conducted by the General Manager and his lean team experts, Dr. Marc Helmold, in China.

References Bergmann, F. (2019). New Work New Culture. Work we want and culture that strengthens us. Hampshire: Zero Books. Evsan, I. (2020). What is New Work? Die neue Art, Leben und Arbeiten zu verbinden.New Work, die Zukunft der Arbeit und die neue Kultur der Menschen. In New WorBlog. Retrieved July 22, 2020, from https://newworkblog.de/new-­work/ Fatma, P. (2015). The effect of organizational culture on implementing and sustaining lean processes. Journal of Manufacturing Technology Management, 26(5), 725–743. Helmold, M. (2020). Total revenue management (TRM). Case studies, best practices and industry insights. Cham: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Management for Professionals. Heidelberg: Springer. Johnson, G., & Scholes, K. (1997). Exploring corporate strategy. Text and cases (4th ed.). London: Prentice Hall. Lauer, T. (2020). Change management. Fundamentals and success factors. Cham: Springer. Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2011). Innovation or imitation? The role of organizational culture. Management Decision, 49(1), 55–72. Shim, W. S., & Steers, R. M. (2012). Symmetric and asymmetric leadership cultures: A comparative study of leadership and organizational culture at Hyundai and Toyota. Journal of World Business, 47(4), 581–591.

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Virtual and Global Networks

However, to make virtual teamwork work this well, you’ll need to move your team to a new set of behaviours, not just to a new generation of technology, with human engagement as the first priority. Keith Ferrazzi

5.1 Virtual Teams and Remote Working A virtual team (also known as a geographically dispersed team, distributed team or remote team) usually refers to a group of individuals who work together from different geographic locations and rely on communication technology such as email, FAX, and video or voice conferencing services in order to collaborate. To curb the spread of COVID-19 in Germany, many companies are sending their employees to the home office during the pandemic. Parents in particular use this opportunity, provided it is given, to look after their children since day care centres and schools across Germany were closed due to the corona virus. According to a recent survey by the Federal Association of Digitalization (BVDW) among more than 1000 employees, 75.4% would be willing to work from home during the coronavirus crisis. 24.6% cannot imagine this. 66.1% of respondents expect their employer to provide an adequate solution in this situation. 54.3% of the employees surveyed think that their employer is technically able to enable them to work from home. 45.7% of those surveyed do not see their employer ready for this yet. For the survey, 1001 employees of small, medium-sized and large companies in Germany (BVDW, 2020). A virtual team is defined a group of people working across time and space and organizational boundaries using technology to communicate and collaborate (Linpack & Stamps, 1997). As such, virtual teams allow organizations to bring

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_5

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Europe (HQ) Shared Service Centre North America

Japan

South America

Australia Fig. 5.1  Virtual and Global Teams. (Source: Author’s Source)

together people with the best expertise, regardless of where they live. The number of people engaged in virtual work continues to rise each year: • In their 2018 survey, Flexjobs found that there had been a 22% increase in telecommuting from 2017 to 2018. • Owl Labs’ 2019 remote workers report found that 54% of US workers work remotely at least once a month, 48% work remotely at least once a week, and 30% work remotely full-time. • Global Workplace Analytics claims that remote working grew 173% between 2005 and 2018. Virtual teams can consist of professionals who work from home full-time or part-­ time, others who take part in mobile work (coming to a fixed office but working outside this space for part of the week), or people who work at a remote location. The COVID-19 pandemic has had a major impact on remote working. Entire organizations across the world are now suddenly required to work remotely from home for an indefinite period of time. This unprecedented global event has made it more important than ever to face the challenges that come with being a part of a virtual team. Figure  5.1 depicts a virtual team with interaction between Europe, North America, South America, Japan and Australia (Fig.  5.2). Figure 5.2 shows the organisational set up with the European headquarters and Exvcellence centres in different locations like North- and South America, Europe, Japan or Australia. The creation of excellence centres will organisations to achieve synergies throughout the organisation and locations. Duplications disappear and the excellence centres will collaborate in an effective and efficient way.

5.2 Challenges for Virtual Teams and Remote Working Working in a virtual team presents many challenges. When employees and team members cannot physically see the colleagues face-to-face, they do not have the social interactions that build relationships and rapport, it can be difficult to establish

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Europe (HQ) Excellence Centre 1 Excellence Centre 4

Excellence Centre 2

Excellence Centre 3 Excellencet Centre 5 Fig. 5.2  Virtual Teams with Excellence Centres

trust. If this process is not managed and organised correctly, this lack of trust can undermine everything that the team is trying to achieve. Another major challenge is communication, especially when a remote team includes members from different countries and cultures. It can also be harder to pick up the visual cues (such as body language and facial expressions) that make communication flow, even when you’re using video. Finally, it can be more difficult to voice your opinion in a virtual team, and it can be harder to resolve team conflict.

5.3 Maturity Levels of Virtual Team Networks Virtual teams are usually fraught with cooperation problems due to distance, different languages, cultural gaps or time differences (Afferbach, 2020). Management and Leadership tasks are to create a structure which helps to overcome these problems in virtual teams. This can be done in Shared Services Organizations (SSO). Companies use SSOs to centralise and streamline internal services, i.e. accounts, human resources, information technology or other activities. The establishment of shared service centres in a company is a form of centralization or concentration of the organization. Virtual teams face many challenges relating to cooperation and through distance, disconnection through reliance on communication technology and discontinuity through temporality of team composition. Virtual teams need a profound performance control process, virtual peer monitoring and appropriate technology (Lindner, 2020). Maturity levels of virtual team work are shown in Fig. 5.3. Most importance is to overcome certain problems like cooperation, communication or networking in virtual teams (Afferbach, 2020). Hybrid virtual teams have both, offices and virtual networks (Afferbach, 2020).

5  Virtual and Global Networks

High

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Dregree of Flexibility for Employees

Virtual Teams in all Time Zones with Satellites

Virtual and distributed Teams in several Time Zones Office and Remote Teams in few Time Zones Hybrid Office & Home Work

Low

Conventional Office Work

High

Dregree of Presence and Control

Low

Fig. 5.3  Maturity Levels of Virtual Teams. (Source: Author’s Source)

5.4 Working and Communicating Effectively in Virtual Networks Effective communication is important within a virtual team. Open, honest communication not only helps you to avoid misunderstandings, but it will also increase your effectiveness. To find out how well a team communicates, and to get tips on how to improve the weaker areas, it is possible to do an interactive quiz. It is important, that the communication process is robust and stable. A checklist can help to make sure that that video calls, emails, presentations, and instant messages are clear, courteous and timely as possible. Effective communication is essential in every aspect of our life, whether it be at home, at work or with our friends. A person who can communicate effectively will always have the advantage when dealing with people. There is a guideline that one can follow to implement the habit of effective communication. The 7Cs of communication are 7 principles that teams must keep in mind while communicating. The 7Cs of Communication is a much-­ quoted list, first provided by Cutlip and Center in 1952 (Cutlip & Center, 2013) (Table 5.1): Various versions of this list, often modified and unattributed, are listed in many business, communications, marketing and public relations books and courses. 1. Credibility: Communication begins in a climate of belief. This climate is built by the performance of the sender who should reflect an earnest desire to serve the

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Table 5.1  7C Model for effective communication in Virtual and Global Teams No. 1. 2. 3. 4. 5. 6. 7.

Seven effective principles for Virtual teams Completeness Conciseness Consideration Concreteness Courtesy Clearness Correctness

Source: Author’s own table

receiver. The receiver will then have high regard for the competency of the sender. 2. Context: An advertising/communications program must square with the realities of its environment. Your daily business activities must confirm, not contradict, the message. 3. Content: The message must have meaning and relevance for the receiver. Content determines the audience and vice versa. 4. Clarity: The message must be put in simple terms. Words used must have exactly the same meaning to the sender as they do to the receiver. Complex messages must be distilled into simpler terms, and the farther a message must travel, the simpler it should be. 5. Continuity and Consistency: Communication is an unending process. It requires repetition to achieve understanding. Repetition, with variation, contributes to learning both facts and attitudes. 6. Channels: Use established channels of communication—channels the receiver uses and respects. Creating new channels is difficult. 7. Capability of audience: Communication must take into account the capability of the audience. Communications are most effective when they require the least effort on the part of the recipient.

5.4.1 Useful Tools for Virtual Teams For online teaching, seminars and video conferences there are numerous video conferencing tools available. These are, among others, tools like: • Zoom • Google Hangouts • UberConference • TrueConf Online • Skype • FreeConference • Lifesize Go

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• Slack Video Calls • Cisco Webex • Face Time In addition, it is recommendable to use social networking and chat tools such as Twitter, LinkedIn, Xing, Slack and Skype are suitable ways to connect with remote team members. Cloud-based collaborative file sharing, on platforms such as Microsoft Office 365 or Google Drive, can help teams to share documents and work together on projects. If employees share their personal social media details, it is important that information is published in a way that is not likely to damage the career or reputation.

5.4.2 Relationship Building in Virtual Teams When working in a virtual team, it is crucial to make an extra effort with relationships. An important part of establishing relationships with teammates is building and maintaining trust. Trust evolves differently in virtual teams. In an office setting, colleagues build relationships and trust through social interaction and collaborative work. Researchers call this benevolent or interpersonal trust. However, in a virtual team, colleagues build trust through reliability, consistency, and responsiveness— this is called ability-based or task-based trust. To build trust, it is important to comply with certain rules. If employees agree on a deadline, or make a promise to call a teammate, it is important to follow it up as a team leader or manager. When all team members demonstrate integrity and work ethic, all team members will learn that they can rely on each other. Finally, it is important to be sensitive to all colleagues in different time zones and cultural areas. If a meeting is scheduled early or late in their region, it is necessary to keep in mind that they might be less vocal or engaged than other team members. Managers should therefore try to schedule a meeting that suits everyone or, at least, causes the least amount of disruption.

5.4.3 Coping with Isolation in Remote Teams When employees are part of a virtual team its normal to experience feelings of isolation. Managers might also feel as if the organization has “forgotten” them if they often work remotely. If managers or team members are experiencing these feelings, it is necessary to take steps to combat them. If the organization has a blog or forum set up to connect and support virtual workers, it is recommendable to spend time using these platforms. If not, with the manager’s permission employees could establish a WhatsApp or WeChat group for the team, or organize a “virtual happy hour” where the team can socialize outside of work on a videoconferencing platform. Apps like Kahoot provide quizzes and other games that you can play with your team.

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5.5 10 Recommendations for Virtual Teams and Networks 5.5.1 Initial and Regular Physical Interactions of All Team Members Before having a virtual team network, it is recommended to bring the team together physically (Watkins, 2013). It may look paradoxical to say in a post on virtual teams, but face-to-face communication is still better than virtual when it comes to building relationships and fostering trust, an essential foundation for effective team work (Watkins, 2013). Virtual teams function better, if the team members know each other and meet from time to time (Helmold, 2020). It is crucial that the virtual team has the chance to get to know each other better, personally and professionally, as well to create shared mission, vision, values and a set of guiding principles for how the team will work. Managers should schedule the physical team meetings at an early stage semi-annually or annually if possible (Watkins, 2013).

5.5.2 Clear Tasks, Objectives and Processes All new leaders need to align their team on goals, roles and responsibilities in the first 90 days. With virtual teams, however, coordination is inherently more of a challenge because people are not co-located. So it is important to focus more attention on the details of task design and the processes that will be used to complete them. Simplify the work to the greatest extent possible, ideally so tasks are assigned to subgroups of two or three team members. And make sure that there is clarity about work process, with specifics about who does what and when. Then periodically do “after-action reviews” to evaluate how things are going and identify process adjustments and training needs (Watkins, 2013).

5.5.3 Common Team Charter Communication on virtual teams is often less frequent, and always is less rich than face-to-face interaction, which provides more contextual cues and information about emotional states—such as engagement or lack thereof (Opdenakker & Cuypers, 2019). The only way to avoid the pitfalls is to be extremely clear and disciplined about how the team will communicate. Create a charter that establishes norms of behaviour when participating in virtual meetings, such as limiting background noise and side conversations, talking clearly and at a reasonable pace, listening attentively and not dominating the conversation, and so on. The charter also should include guidelines on which communication modes to use in which circumstances, for example when to reply via email versus picking up the phone versus taking the time to create and share a document (Watkins, 2013).

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5.5.4 Using Effective and Standardized Communication Tools and Devices Developments in collaborative technologies—ranging from shared workspaces to multi-point video conferencing—unquestionably are making virtual teaming easier. However, selecting the “best” technologies does not necessarily mean going with the newest or most feature-laden. It’s essential not to sacrifice reliability in a quest to be on the cutting edge. If the team has to struggle to get connected or wastes time making elements of the collaboration suite work, it undermines the whole endeavour. So err on the side of robustness. Also be willing to sacrifice some features in the name of having everyone on the same systems. Otherwise, you risk creating second-­ class team members and undermining effectiveness (Vanderbloemen, 2020; Watkins, 2013).

5.5.5 Creating a Virtual Team Spirit and Rhythm When some or all the members of a team are working separately, it’s all-too-easy to get disconnected from the normal rhythms of work life. One antidote is to be disciplined in creating and enforcing rhythms in virtual team work. This means, for example, having regular meetings, ideally same day and time each week. It also means establishing and sharing meeting agenda in advance, having clear agreements on communication protocols, and starting and finishing on time. If you have team members working in different time zones, don’t place all the time-zone burden on some team members; rather, establish a regular rotation of meeting times to spread the load equitably.

5.5.6 Using Common Language Virtual teams often also are cross-cultural teams, and this magnifies the communication challenges—especially when members think they are speaking the same language, but actually are not. The playwright George Bernard Shaw famously described Americans and the British as “two nations divided by a common language”. His quip captures the challenge of sustaining shared understanding across cultures. When the domain of team work is technical, then the languages of science and engineering often provide a solid foundation for effective communication. However, when teams work on tasks involving more ambiguity, for example generating ideas or solving problems, the potential for divergent interpretations is a real danger (see for example this Anglo-Dutch translation guide). Take the time to explicitly negotiate agreement on shared interpretations of important words and phrases, for example, when we say “yes”, we mean… and when we say “no” we mean…and post this in the shared workspace. A high-performing team also needs

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solid guidelines and common objectives. Creating a team charter that serves to clarify performance expectations is a very good tool to streamline virtual teams into the same direction. The provision of a literal, explicit framework for success to ensure that all members of the virtual team are engaged and on the same page regardless of where they are in the world. In the same vein, managers must promote clear, open, and consistent communication. Honesty and openness can help foster some of the traits that prevent unnecessary challenges and conflict: respect, familiarity, comfort, and trust. Similarly, if the whole team is comfortable, they will be more likely to overcome the unavoidable challenges and conflicts associated with diverse work styles (Watkins, 2013).

5.5.7 Establishing Virtual Water Coolers Create a “virtual water cooler”. The image of coworkers gathering around a water cooler is a metaphor for informal interactions that share information and reinforce social bonds. Absent explicit efforts to create a “virtual water cooler”, team meetings tend to become very task-focused; this means important information may not be shared and team cohesion may weaken. One simple way to avoid this: start each meeting with a check-in, having each member take a couple of minutes to discuss what they are doing, what’s going well and what’s challenging. Regular virtual team-building exercises are another way to inject a bit more fun into the proceedings. Also enterprise collaboration platforms increasingly are combining shared workspaces with social networking features that can help team members to feel more connected.

5.5.8 Clarifying and Tracking Commitments Clarify and track commitments. In a classic HBR article “Management Time, Who’s got the Monkey?” William Oncken and Donald L.  Wass use the who-has-the-­ monkey-on-their-back metaphor to exhort leaders to push accountability down to their teams (Oncken & Wass, 1999). When teams work remotely, however, it’s inherently more difficult to do this, because there is no easy way to observe engagement and productivity. As above, this can be partly addressed by carefully designing tasks and having regular status meetings. Beyond that, it helps to be explicit in getting team members to commit to define intermediate milestones and track their progress. One useful tool: a “deliverables dashboard” that is visible to all team members on whatever collaborative hub they are using. If you create this, though, take care not to end up practicing virtual micro-management. There is a fine line between appropriate tracking of commitments and overbearing (and demotivating) oversight.

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5.5.9 Sharing Leadership Foster shared leadership. Defining deliverables and tracking commitments provides “push” to keep team members focused and productive; shared leadership provides crucial “pull”. Find ways to involve others in leading the team. Examples include: assigning responsibility for special projects, such as identifying and sharing best practices; or getting members to coach others in their areas of expertise; or assigning them as mentors to help onboard new team members; or asking them to run a virtual team-building exercise. By sharing leadership, you will not only increase engagement, but will also take some of the burden off your shoulders.

5.5.10 Securing Performance Feedback and Coaching Don’t forget the 1:1s. Leaders’ one-to-one performance management and coaching interactions with their team members are a fundamental part of making any team work. Make these interactions a regular part of the virtual team rhythm, using them not only to check status and provide feedback, but to keep members connected to the vision and to highlight their part of “the story” of what you are doing together.

5.6 Case Study: New Work in Japan Japan’s traditional workplace is being challenged by new initiatives that promote flexible working as an alternative to stressful commutes, oppressive hours and a dwindling population. Tokyo has one of the best transit systems in the world. Trains are punctual, clean and ubiquitous. But you don’t want to be on the JR Yamanote Line at 8.30  a.m. unless you enjoy near-asphyxiation in the crush of people. Veteran strap-hangers stoically endure elbows in their ribs and 2-h commutes because they have no choice but to be at the office. Even in the digital age, Japanese companies often emphasise being present in the workplace because that’s the way it’s always been. In Japan, the concept of working from home is relatively alien. Only 13.3% of Japanese firms had a teleworking (also known as remote working) policy as of October 2016, and only 3.3% were planning to introduce one, according to a survey by the Internal Affairs and Communications Ministry. As for why companies were not letting staff work remotely, 74.2% said they had no type of work that was suitable. When it released the survey results last June, however, the ministry noted that companies with remote working systems were 1.6 times more productive than those that insisted staff punched the clock at the office. Now the ministry wants to increase the telework rate among companies to 30% by 2020. More productivity, less stress. While Japan has some of the longest working hours in the world, more hours spent working doesn’t translate into better productivity. In fact, Japan ranks 30th in terms of GDP per capita and productivity, according to 2017 OECD data.

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5.6.1 Cultural Change Towards New Work If that wasn’t reason enough to push companies to rethink their approach to work, in 2020 Tokyo will host the Olympics. Some 40  million overseas tourists are expected to visit Japan that year, up from nearly 30 million in 2017, adding 920,000 riders every day to public transportation networks in Tokyo during the Games. The government has been trying to get companies to be more flexible with their employees, to promote a healthy work–life balance, after a series of scandals involving overworked people who died. Earlier this year it launched the Premium Friday campaign, encouraging corporate warriors to leave the office at 3 p.m. on the last Friday of every month. Meanwhile, companies such as Microsoft Japan have embraced flexible work— staff can work anywhere as long as the work gets done—and Yahoo! Japan is considering a 4-day work week.

5.6.2 New Ways of Working In July 2017, the internal affairs ministry inaugurated Telework Day to promote remote working. About 900 organisations took part, including the Tokyo Metropolitan Government, which oversees the metropolis of nearly 14 million. “In the past, economic growth was achieved through hard work and long working hours, but now it’s unlikely for people to think that long working hours are linked to achievement”, Tokyo Governor Yuriko Koike told attendees at an event called Telework Festa. “We need a new [work style] with less physical stress, to enrich the life of each individual”. Major companies took up the cause. More than half the workers at telecom NTT Data’s Tokyo headquarters switched to remote work, while 270 out of 330 eligible Tokyo-based staff at snack-maker Calbee telecommuted, according to The Japan Times. The internal affairs ministry wants to make Telework Day an annual event, and there’s reason to believe it could change attitudes in Japan. After all, the government has a track record of change. In 2005, Koike, then environment minister, launched the Cool Biz campaign to encourage workers to wear short sleeves instead of suits in summer so air conditioning could be reduced and electricity could be saved. Dressing down for summer is now standard and millions of tons of CO2 emissions have been saved through the campaign.

5.6.3 Performance Improvement For companies and corporate management, the benefits of flexible work hours seem obvious. A 2014 study in The Quarterly Journal of Economics found that call centre staff at a travel agency who worked from home as part of an experiment saw a 13% increase in performance, including fewer breaks and sick days. The message is

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spreading in Japan, but slowly. Kunihiko Higa, a professor in the Tokyo Institute of Technology’s Graduate School of Innovation Management, says that businesses in Japan have yet to be convinced of the merits of remote working. Meanwhile, implementation is usually left to the discretion of individual managers, who may be unwilling to try something unprecedented. Other questions include how to set up communications systems that can approximate the work environment as closely as possible. But Higa points out that another pressing problem may also help popularise teleworking: Japan’s demographic woes. With a low birth rate and strict policies against immigration, the population fell by a record 300,000  in 2016. By 2050, about 40% of Japanese will be aged over 65, according to research from the National Institute of Population and Social Securities Research. “There’s a serious chronic shortage of workers due to the aging population and the problems of caring for children and elderly family members”, says Higa. “These are common issues for all organisations, regardless of whether they’re in the public or private sector. If forward-­thinking business leaders succeed in introducing full-scale strategic teleworking, it will spread quickly”. As the country’s population shrinks, the Japanese will have to do more with less in order to remain competitive in the global economy and maintain their standard of living. That includes investing in flexible approaches to work. Productivity will likely go up, and those early-morning trains might be a bit more comfortable (Helmold, 2020).

References Afferbach, T. (2020). Hybrid virtual teams in shared services organizations. Practices to overcome the cooperation problem. Cham: Springer. BVDW. (2020). Bundesverband Digitale Wirtschaft (BVDW) e.V. Retrieved September 1, 2020, from https://www.bvdw.org/ Cutlip, S. M., & Center, H. A. (2013). Effective public relations: Pathways to public favor (11th ed.). London: Pearson. Helmold, M. (2020). Total revenue management (TRM). Case studies, best practices and industry insights. Cham: Springer. Lindner, D. (2020). Virtuelle teams und Homeoffice. Empfehlungen zu Technologien, Arbeitsmethoden und Führung. Wiesbaden: Springer. Linpack, J., & Stamps, J. (1997). Virtual teams: Reaching across space, time and organizations with technology. New York: Wiley. Oncken, W., & Wass, D.  L. (1999). Delegation. Management time: Who’s Got the Monkey? In HBR. Retrieved September 1, 2020, from https://hbr.org/1999/11/ management-­time-­whos-­got-­the-­monkey Opdenakker, R., & Cuypers, C. (2019). Effective virtual project teams. A design science approach to building a strategic momentum. New York: Springer. Vanderbloemen, W. (2020). Working remote. Best practices on running virtual teams. From the founder of company with 1,000 remote employees. Retrieved August 21, 2020, from https://www. forbes.com/sites/williamvanderbloemen/2020/03/20/leading-­teams-­virtually/#3a4ef08b5b8b Watkins, M. (2013). Making virtual teams work: Ten basic principles. In HBR. Retrieved August 21, 2020, from https://hbr.org/2013/06/making-­virtual-­teams-­work-­ten

6

Transformational Leadership in New Work Organizations

The Toyota style is not to create results by working hard. It is a system that says there is no limit to people’s creativity. People don’t go to Toyota to ‘work’ they go there to ‘think’. Taiichi Ohno

6.1 Transformational Leadership Style in New Work Leadership is defined as the way of motivating and directing a group of people to jointly work towards achieving common goals and objectives (Helmold & Samara, 2019; Fatma, 2015). The leader is the person in the group that possesses the combination of personality and leadership skills that makes others want to follow his or her direction. Leadership implies formal and informal power distribution. The Tannenbaum–Schmidt Leadership Continuum is a model showing the relationship between the level of authority you use as a leader and the freedom this allows your team (Tannenbaum & Schmidt, 2009). At one end of the continuum are managers who simply tell their employees what to do. At the other end of the continuum are managers who are completely hands off. As you move from one end of the continuum to the other, the level of freedom you give your team will increase and your use of authority will decrease. Most managers and leaders will lie somewhere in the middle between these two extremes. The Leadership Continuum was developed by Robert Tannenbaum and Warren Schmidt in their 1958 Harvard Business Revie (HBR) article: “How to Choose a Leadership Pattern”. Tannenbaum was an organizational psychologist and Professor at the UCLA Anderson School of Management. Schmidt was also a psychologist who taught at the UCLA Anderson School of Management. Most leadership models ringfence a leadership style and analyse it in isolation from other leadership styles. However, in practice, a single leadership style is not appropriate for all situations. Sometimes you might want to borrow elements

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_6

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Cannot be demanded by Management

Motivation & Commitment

Passion

Creativity Self-Initiative Intellect

Can be demanded by Management

Hard Work Obedience

Fig. 6.1  Leadership in Lean management focuses on employee motivation and commitment. (Source: Author’s source)

of another leadership style to use with an individual within your team. Other times you might completely change your style if the situation requires it. Tannenbaum and Schmidt argued that there are certain questions to be considered when selecting a leadership style (Figs. 6.1 and 6.2): • What is your preferred style? • What are your values? • What is your relationship with your team? • Are they ready and enthusiastic to take responsibility? • How important is the work being undertaken? • How important or tight are deadlines? • What is the organizational culture?

6.1.1 Tells The leader that tells is an authoritarian leader. They tell their team what to do and expect them to do the work and job. This style is useful when you urgently need to turn around a department or business, and also in situations where deadlines are critical. However, this extreme style can be frustrating for experienced subordinates as it takes no account of team members welfare. Because of this, make sure you only use this style when the situation calls for it.

6.1.2 Sells The leader that sells makes their decision and then explains the logic behind the decision to their team. The leader isn’t looking for team input, but they are looking

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Continuum of Leadership Styles Leader centred

Tells decision

Sells desicion

Group centred

Decides decision

Consults decides

Leader Leader presents collects problem, ideas and group decides decides

Group defines problem, group decides

New Work Leadership Fig. 6.2  Leadership styles. (Source: Author’s source (adapted from Tannenbaum and Schmidt 2009))

to ensure the team understands the rationale behind the decision. A key aspect of this approach is for the leader to explain how the decision will benefit the team. In this way, the team will see the manager as recognizing their importance.

6.1.3 Suggests The leader that suggests makes their decision, explains the logic behind the decision and then asks team members if they have any questions. Through asking questions, the team can more fully understand the rationale behind the decision than the previous approaches. The leader isn’t going to change their decision but they do want the team to fully understand the rationale behind it.

6.1.4 Consults The leader that consults presents their provisional decision to their team and invites comments, suggestions, and opinions. This is the first point on the continuum where the team’s opinion can influence or even change the decision. The leader is still in control and the ultimate decision maker, but open to any good ideas the team may

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have. With this style, the team feels they can influence the decision-making process. Once the leader has finished consulting with their team, their decision is finalized.

6.1.5 Joins The leader who joins presents the problem to their team and then works with the team in a collaborative manner to make the decision as to how the problem is going to be solved. This point on the continuum differs from the previous four, as it is the first point the leader isn’t presenting their decision. Instead, they are simply presenting the problem to be solved. This obviously will require plenty of input from the team, making this approach suitable when the team is very experienced or has specialist knowledge. Because this style involves greater input and influence form the team it can lead to enhanced feelings of motivation and freedom.

6.1.6 Delegates The leader that delegates asks their team to make the decision, within limits that the leader sets. Although the team makes the decision, it is still the leader that is accountable for the outcome of the decision. It might seem very risky to let your team make a decision even though you’ll be held accountable for the outcome. However, you can limit the risk by specifying constraints. You should use this style only with very experienced teams.

6.1.7 Abdicates The leader who abdicates lets the team decide what problems to solve and how to solve them. Abdication is the total opposite of telling the team what to do using an autocratic style. Here the team must shape and identify the problem, analyse all the options available, before making a decision as to how to proceed. They will then implement the course of action without necessarily even running it by the leader. This style can be the most motivating but can be disastrous if it goes wrong. Because of this, you should only use this approach with very experienced and senior people. This style is often the way the executive boards of companies will run. Under the CEO, each of the division heads will have complete autonomy as to how they choose to execute the company’s strategy.

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6.2 Empowerment and Jidoka Empowerment and Jidoka are key success factors in the New Work culture (Helmold 2020). Teams and individuals must be empowered by their leadership and management. A team is defined as group of people with common goals. A work or project team is a group of per-sons who are grouped according to process and/or geographical location who support each other. In the lean concept, it is important to empower teams as shown in Fig. 6.3. Whereas the conventional approach focuses on top down decisions, the empowerment-focused approach utilizes the creativity and input from the team. Ideas are generated and collected from the team members, who independently decide which options to implement. The basis of this concept is that empowerment will promote ideas, creativity and innovations from all team or project members. Employee empowerment, organizational and cultural changes starts with a top management who is willing to entrust employees with decisions regarding their work. When it comes to production, many modern companies still operate as they did in the early twentieth century, where the production employees, are merely the workers. The Lean concept of empowerment and stopping production to fix a production problem is called Jidoka, which means “getting it right the first time” rather than passing it on to the customer (next work station). Jidoka is a prime example of the Lean philosophy of “Quality at the Source” which emphasizes that every production worker (and supplier) is responsible and empowered for providing quality material to their customer.

Conventional approach Develop internally

Decide internally

A partnership based approach of implementing an improvement is the suitable long-term solution for New Work Concepts

Announce

Defend

Empowerment focused approach Empowerment

Collect

Development based on teamwork

Decide

New on T Work i s eam wor based k

Implement

rment Empowe Fig. 6.3  Empowerment focused versus conventional approach. (Source: Author’s source)

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6.3 Leadership Styles According to Blake and Mouton 6.3.1 Leadership Must Involve People The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. This model originally identified five different leadership styles based on the concern for people and the concern for production (Blake & Mouton, 1964). The optimal leadership style in this model is based on Theory Y. The grid theory has continued to evolve and develop. The theory was updated with two additional leadership styles and with a new element, resilience. The Blake Mouton Managerial Grid is based on two behavioural dimensions: • Concern for People: this is the degree to which a leader considers team members’ needs, interests and areas of personal development when deciding how best to accomplish a task. • Concern for Results: this is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task. Blake and Mouton defined five leadership styles based on these, as illustrated in the diagram below. The model is represented as a grid with concern for production as the x-axis and concern for people as the y-axis; each axis ranges from 1 (Low) to 9 (High).

6.3.1.1 Impoverished Management—Low Results/Low People The Impoverished or “indifferent” manager is mostly ineffective. With a low regard for creating systems that get the job done, and with little interest in creating a satisfying or motivating team environment, his results are inevitably disorganization, dissatisfaction and disharmony. 6.3.1.2 Produce-or-Perish Management—High Results/Low People Also known as “authoritarian” or “authority-compliance” managers, people in this category believe that their team members are simply a means to an end. The team‘s needs are always secondary to its productivity. This type of manager is autocratic, has strict work rules, policies and procedures, and can view punishment as an effective way of motivating team members. This approach can drive impressive production results at first, but low team morale and motivation will ultimately affect people’s performance, and this type of leader will struggle to retain high performers. 6.3.1.3 Middle-of-the-Road Management—Medium Results/ Medium People A Middle-of-the-Road or “status quo” manager tries to balance results and people, but this strategy is not as effective as it may sound. Through continual compromise, he fails to inspire high performance and also fails to meet people’s needs fully. The result is that his team will likely deliver only mediocre performance.

6.3  Leadership Styles According to Blake and Mouton

More tasks which give increased responsibility, autonomy and decision-making; qualitative increase

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Flexible and agile Work Environment

Job Enrichment

New Work

Job Empowerment Decision-making Authority

Original Tasks

Job Enlargement More Tasks of the same type; quantitative increase

Fig. 6.4  Leadership styles and Grid according to Blake and Mouton. (Source: Author’s Source)

6.3.1.4 Country Club Management—High People/Low Results The Country Club or “accommodating” style of manager is most concerned about her team members’ needs and feelings. She assumes that, as long as they are happy and secure, they will work hard. What tends to be the result is a work environment that is very relaxed and fun, but where productivity suffers because there is a lack of direction and control (Fig. 6.4). According to the Blake Mouton model, Team management is the most effective leadership style. It reflects a leader who is passionate about his work and who does the best he can for the people he works with. This applies also to New Work models. Team or “sound” managers commit to their organization’s goals and mission, motivate the people who report to them, and work hard to get people to stretch themselves to deliver great results. But, at the same time, they’re inspiring figures who look after their teams. Someone led by a Team manager feels respected and empowered, and is committed to achieving her goals. Team managers prioritize both the organization’s production needs and their people’s needs. They do this by making sure that their team members understand the organization’s purpose, and by involving them in determining production needs. When people are committed to, and have a stake in, the organization’s success, their needs and production needs coincide. This creates an environment based on trust and respect, which leads to high satisfaction, motivation and excellent results (Blake & Mouton, 1985). The grid theory breaks behaviour down into seven key elements as shown in Table 6.1:

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Table 6.1  Leadership Behaviour according to Blake and Mouton Element Initiative Inquiry Advocacy Decision-making Conflict resolution Resilience Critique

Description Taking action, driving and supporting Questioning, researching and verifying understanding Expressing convictions and championing ideas Evaluating resources, choices and consequences Confronting and resolving disagreements Dealing with problems, setbacks and failures Delivering objective, candid feedback

Source: Author’s own table

6.4 Autonomous Work Groups Similar to an individual with autonomy at work, an autonomous work group is a team of employees granted autonomy or independence over the work they do within an organization. Autonomy is simply a form of independence that gives each group the latitude to be creative in their own way. Autonomous work requires a specific form of transformational leadership, in which the superiors grant self-governing opportunities to their staff.

6.5 Virtual Teams and Groups Similar to an individual with autonomy at the same physical work place, there are virtual autonomous work group or teams in different locations (Lindner, 2020). These teams are geographically separated, often in different time zones, and work jointly on certain projects. Virtual Work Teams require specific leadership styles of trust, support and empathy (Lindner, 2020).

6.6 Job Rotation Job Rotation is a management approach where employees are shifted between two or more assignments or jobs at regular intervals of time in order to expose them to all verticals of an organization. The process serves the purpose of both the management and the employees. Advantages and disadvantages of Job Rotation are: • • • •

Advantages of Job Rotation Reduces the monotony of work. Broadens one’s knowledge and skills. Helps the management to explore the hidden talent of an individual. Helps an individual to realize his own interest.

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• Helps in creating the right employee job fit. • Developing a wider range of experience. Disadvantages of Job Rotation Reduces uniformity of work. Fear of performing another task effectively. Frequent interruptions in the work. Misunderstanding between the team members or union. Difficulty in coping with other team members. Fear of getting more tedious or a hectic work. The job rotation is beneficial for both the employer and the employee. The employer can identify the vertical where the employee is giving his best and can also place him in the position of a person who has left because of the retirement, transfer, termination or any other reason. • • • • • •

6.7 Job Enlargement, Job Enrichment and Empowerment Job enlargement is an increase in job tasks and responsibilities to make a position more challenging. It is a horizontal expansion, which means that the tasks added are at the same level as those in the current position. The Job Enrichment is the job design technique used to increase the satisfaction among the employees by delegating higher authority and responsibility to them and thereby enabling them to use their abilities to the fullest. Job enrichment will affect motivation more, as the quality of work will enrich the employee. Job empowerment describes strategies and measures that are intended to increase the degree of autonomy and self-­determination in the lives of people or communities and enable them to represent their interests independently, independently and independently (Fig. 6.5).

6.8 Case Study: BMW Quality Through Job Rotation The BMW Group has more than 92,000 worldwide and centres them inside the middle of the corporate strategy. The human resource policy of the Munich Automakers is firmly integrated in corporate policy and affects all strategic or structural decisions. Since 1983 BMW has been practicing an employee-oriented personnel policy. Present and future employees are not only a cost factor, but a success factor for achieving long-term sustainable competitive advantages (BMW XE "Bayerische Motorenwerke (BMW)" , 2019). BMW introduced not only flexible working time models, but also created new work structure with more freedom, thus using the employees in an optimal way. This way, the company left the traditional way and methods of the division of labour towards integrated working structures. Integration means in this context, that project tasks and all processes are defined, divided and fulfilled. This is done by leaving the traditional way of specialized functions and departments to a cross-functional project team, in which project teams are

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High

1.9

9.9

Concern for People

Country Club Management

Team Management

New Work

Middle-of-the-Road Management

5.5

Impoverished Management

Authority-Compliance Management

1.1 Low

9.1 Concern for Production

High

Fig. 6.5  Job enlargement and Job enrichment. (Source: Author’s Source)

responsible for achieving the overall project results. For this change in human resources, it is mandatory to train not only hard skills (technical knowledge etc.), but also soft and social skills (team skills, leadership, etc.). The acquisition of such new skills provides some variety and enrichment in the daily work and provides for each individual personal development opportunities, so that job rotation is possible. The application shows numerous exchange experiences and insights into a large range of work processes and jobs (BMW XE "Bayerische Motorenwerke (BMW)" , 2019). BMW implemented this practice with the example of Mr. Kroneder, previously a trainer in the field of electronics, who rotated his job with Mr. Hillerbrand, a maintenance engineer for electronics, in the vehicle final assembly. The aim of this job rotation program is to create a new, fully qualified technical trainer with assembly line experience, to apply the knowledge at the shop floor and to promote worker development at the assembly line. This job rotation was executed for a period of 6 months. Because the exchange between production and training is very positive, reinforces the plan to train two instructors annually between 6 months and a whole year to offer this opportunity. (BMW XE "Bayerische Motorenwerke (BMW)" , 2019). Figure 6.6. shows the production in the motorbike factory of BMW in Berlin Spandau.

References

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Fig. 6.6  BMW production. (Source: Author’s Source)

References Blake, R., & Mouton, J. (1964). The managerial grid: The key to leadership excellence. Houston: Gulf Publishing. Blake, R., & Mouton, J. (1985). The managerial grid III: The key to leadership excellence. Houston: Gulf Publishing. BMW. (2019). Job rotation bei der BMW group. Retrieved November 4, 2019, from h t t p s : / / w w w. p r e s s . b m w g r o u p . c o m / d e u t s c h l a n d / a r t i c l e / d e t a i l / T 0 0 0 5 7 6 0 D E / jobrotation-­bei-­der-­bmw-­group?language=de. Fatma, P. (2015). The effect of organizational culture on implementing and sustaining lean processes. Journal of Manufacturing Technology Management, 26(5), 725–743. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Management for professionals. Heidelberg: Springer. Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. Cham: Springer. Lindner, D. (2020). Virtuelle teams und Homeoffice. Empfehlungen zu Technologien, Arbeitsmethoden und Führung. Wiesbaden: Springer. Tannenbaum, R., & Schmidt, W. H. (2009). How to choose a leadership pattern (Harvard business review classics). Boston, MA: Harvard Business Press.

7

New Office Concepts in the Post COVID-­19 Times

The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things. Ronald Reagan

7.1 New Work Concepts That Will Stay After COVID-19 The digital transformation is changing the way we work and what demands we place on our work environment and location. The focus is no longer solely on the salary and extrinsic factors. New Work focus mainly on intrinsic factors. Intrinsic motivation refers to an individual’s personal interests, satisfaction and enjoyment. The factors affecting it are internal. Therefore, a person learns the learning’s sake without expecting anything such as grades or praise in return. Instead, they are guided by something deeper (Helmold, 2020). A good work–life balance and personal development on a professional and personal level are now playing an increasingly important role. In the case of work processes that run virtually, flexible work models are particularly suitable to respond to the new needs of the new worker and to better combine professional and private life. For future work, it will become more and more important to change old structures and create space for new working models. The Internet makes it possible to work in virtual teams from anywhere in the world. The introduction and use of flexible working models are therefore only a logical consequence. In the following we present you the advantages of flexible working models. Many companies already understand today how we want to work in the future. Giving employees more freedom to choose their working hours and location is a good step in the right direction. Because in the future it will become more and more important that companies respond to the individual needs of their employees and offer flexible working models. In this way, everyone can find out for

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themselves which way of working is most effective and satisfactory. Above all, employee satisfaction, trust and appreciation should be increased in order to remain interesting as an employer in the long term. This will enable the highest productivity and the greatest success for the company in the future (Bergmann, 2019).

7.2 New Work Office and Layout Concepts 7.2.1 Post COVID-19 Layout Concepts The Corona pandemic will have a lasting impact on company operations and office layouts and spaces. On the one hand office spaces will reduce due to the fact that companies are allowing and encouraging their employees to work at home. On the other hand, office layouts must be organised in a safe and healthy way in the light of the post Covid-19 times. Modern science and New Work concepts have recognized, that work design, office layout, lightning, computer work stations, ergonomics that critically affect employee satisfaction, morale and work outcomes (Nab, 2019). From autonomous cleaning devices to tighter cybersecurity measures, here are the technologies influencing how the office could look during the reopening process and beyond. Get the full report. The Covid-19 pandemic has disrupted nearly every aspect of our lives, including tasks as fundamental as going to work. While many office workers are still working from home, others across the world are now beginning to return to their offices in person for the first time in months. However, in the US, 2 out of 3 workers still feel uncomfortable returning to the workplace, according to a Qualtrics study. Outbreak prevention, worker safety, and employees’ peace of mind will be top concerns for businesses around the world as they begin to reopen their office doors. In this report, we dive into some of the technologies that will help address these concerns and influence the future of the office space, from autonomous cleaning solutions to people-­counting sensors. Figure  7.1 depicts the future office layout in the post COVID-19 times (CB Insights 2020). While the World Health Organization (WHO) and other health authorities have issued guidance for companies to make offices safer, reopening plans vary widely between countries and cities. And as we continue to learn more about the virus, no one solution has emerged as a standalone prevention method. For example, some experts point to social distancing as being most vital to reducing spread, while others highlight wearing masks as key. Companies will have to look to guidelines from local and national authorities for each office location. Their strategies will likely involve a combination of approaches to minimize risks for employees, which can be aided by the technologies and start-ups featured in this report. Throughout this report, CB Insights visualizes the tech-enabled in-office journey for an employee as shown in Fig. 7.2. The new considerations and technologies that may impact each part’s looks as follows: • Pre-Entry Health Checks • Touchless Entry

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Fig. 7.1  New Office Layout. (Source: CB Insights)

Fig. 7.2  Innovations for New Work Office Concepts. (Source: CB Insights)

• • • • • • •

Social Distancing Sensors Office People Counting System Remote Collaboration and Online Tools Cybersecurity Devices Employee Wellness and Engagement Tools Low-Touch and Voice Recognition Devices in Office and other Areas Autonomous Cleaning Devices Moving forward, many companies will likely reconsider their corporate real estate footprint, whether that involves downsizing or redistributing space to satellite offices. A completely remote workforce seems unlikely, given the intangible

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benefits of social connection, collaboration, and innovation that in-person working provides. Nonetheless, it will be crucial to create optimal conditions for employees to work remotely as well as in the office. To stay ahead of the curve, companies will need to consider key investments across wellness, remote collaboration tools, mobile cybersecurity tech, accessible HR tools and workforce training programs for professional development and upskilling.

7.2.2 Open Office Layout Concepts An open office is an open-plan work environment where there are no enclosed office rooms or walled cubicles for employees. Usually, employees work in the same room, often beside each other, while seated along a huge desk or on workstations positioned close together. Open offices first came around the 1950s when employers needed to find a way to cut business costs through reduced construction fees. Today, it is the standard office layout for both start-ups and Fortune 500 companies (Helmold, 2020). Advantages • Collaboration: Office designs play a huge role in the company culture you want to build. The type of layout can dictate your employee’s satisfaction level, attitude, and organization. So, if you want your company to have a collaborative, social and energetic environment, an open office will help you achieve it. Open offices are believed to encourage better communication and teamwork. Open offices are mostly favoured by companies that rely on employee engagement and participation such as marketing agencies, journalism newsrooms and graphic design companies. • Cost-friendly: When it comes to financial aspects, it is without a doubt that an open office layout is much cheaper and practical compared to a closed office. With an open-plan, you can squeeze more people per square footage of the area. You need not buy a lot of furniture too. By placing workstations against each other, you can create lots of space to fit everyone in the company. Disadvantages • Noise: Too much noise in open offices can prevent employees from working productively. If you have employees working on tasks that require concentration and quiet space, noise from an open office can be a huge roadblock to their productivity. To make matters worse, employees also tend to have different thresholds for noise and concentration. • Conflicts: When a group of people with different personalities and beliefs are crammed into a prison-like room to work for 8 h a day, there’s a high possibility of misunderstandings and conflicts. If not managed, it can hurt productivity and also increase stress-level among employees. • Spreading illnesses: Unlike closed office where there are cubicles to separate one another, in an open office you get to interact with everyone in the company. If an employee is sick with a communicable disease, they can easily transfer and spread the virus to the rest of the department.

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7.2.3 Closed Work Office and Layout Concepts A closed office, on the contrary, is a type of working area where employees have their own individual working areas distinctly divided either by using pucca walls, cubicles, or panels. The term “cubicle farms” which used to describe the closed office trend back in the 1980s is now in decline. Advantages • Privacy: Segmented private offices are the best choice if you want privacy among your employees. Privacy plays an important role in decision-making process. It also helps bring a sense of security among your employees. With a wall around them, they don’t have to feel afraid of being called out for idling or doing something that’s not work-related (even if they’re working to their best all the time!). They can also personalize their cubicles by hanging family photos or memorabilia that will inspire them to work better. • Better performance: Unlike open offices, closed offices can help minimize distraction allowing employees to work better and produce quality results. Closed offices are better used for companies with jobs that require concentration and quiet working areas such as law firms, accounting agencies, and other businesses in the financial sector. • Clear Hierarchy: Closed office environments provide employees a clear understanding of office hierarchy. The higher their position in the company, the better offices they work in. This can be an incentive for new staff to work harder for the company. Disadvantages • Costly: Enclosed offices are significantly more expensive to build and maintain than an open-plan office. Since each employee has his own workspace or cubicle, you will need more area to fit every member of your team. A large office space will also require more furniture, heating and maintenance. • Low Supervision: It’s hard to supervise all employees in a closed office environment compared to the open-plan layout. Because your employees are in their own private offices or cubicles, it can be difficult to understand what everyone is doing.

7.3 Remote Work and Home Office A further developed form of the home office is the flexible remote work model. Employees work 100% in virtual teams, the employer does not require any time in the office. This model promotes the possibility of putting together international teams that can work with one another regardless of time and location. This gives companies the opportunity to find the best employees worldwide, bring them together and lead them in a virtual team. Networking on an international level enables new perspectives, approaches and knowledge from all over the world to be discovered and used more effectively.

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The flexible working model remote work is particularly suitable for people who like to be on the go and do not want to commit themselves to one place of work. For example, remote work has developed in recent years. New Work companies like Amazaon or Google established as a trend among travellers. But this model is also suitable for parents who want to better combine work and family life or people with health problems who cannot drive to an office every day. As with the home office, it is important to be able to organize yourself and to actively call it a day. Because this is the only way to achieve a satisfactory work–life balance (Lindner, 2020). What should you watch out for if you want to work as a remote worker? For one, you can actively look for companies that offer this flexible working model. As more and more companies are open to the work model, actively approaching your employer can also be worthwhile if you have decided to work as a remote worker. A list of the most popular companies that support remote work has e.g. B. Forbes created. On the other hand, there is the possibility of finding out about the latest remote jobs via newsletter or online platforms, or of trying out remote work in an organized manner. Home office was already possible for approx. Three out of four companies before the corona pandemic according to a survey of the IUBH (IUBH, 2020). 22% of the respondents stated that more than 3 days of home office per week were allowed. 21.6% stated that home office was not possible and 5% of the respondents did not know what the company’s internal regulations look like. Looking to the future, 42% of those surveyed assume that there will be more home offices after the corona pandemic. 27.3% assume that the home office policy will remain the same and 14.9% expect less home office. 15.8% cannot assess the situation. Almost 60% of those surveyed state that they had worked from home at least occasionally before the pandemic. After the pandemic, 79.4% plan to be in the home office at least occasionally. 96% of those surveyed who previously worked in the home office want to continue doing this in the future. In addition, more than half of those surveyed who have not previously worked from home intend to do so in the future. Home office plays a significant role in all activities. 57% of the respondents who stated that they carry out an activity that mostly has to be carried out at work plan to work from home in the future. Of those surveyed for whom home office at least 2 days per week would not be a problem, around 85% also want to work in the home office in the future, and around 90% of those surveyed who could even do 100% home office plan at least in the future to work from home at times. 42.6% of the study participants assume that the corona pandemic will drive their companies’ investments in digitization. 39% said that their companies’ investments in digital business models have already increased and around 30% of respondents describe the company they work for as a digital pioneer in its industry (IUBH, 2020).

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7.4 Coworking Spaces and Shared Offices As the flexible home office and remote work models show, the work environment is important in order to be able to work productively and successfully. The basic idea of the shared offices, so-called coworking spaces, is productive work in a creative atmosphere. Because coworking does not only mean spatial collaboration, but also intellectual. A coworking space is a place that enables both concentrated work and stimulating exchange in a relaxed and creative work atmosphere. They also have the advantage that, in addition to being well-equipped, they also promote networking within a community. This is precisely why they are becoming increasingly popular as a place to work. Especially among individualists, in the start-up scene, among creatives and freelancers. The principle is simple: a coworking space provider rents individual workstations or office space on an annual or monthly basis and even daily to people who want to work in a relaxed atmosphere in the coworking space. A coworking space often offers open workspaces with individual workstations, office and meeting rooms. In addition, open spaces and events promote exchange and networking in the community. While there were only just over 2000 coworking spaces worldwide in 2012, today there are already more than 13,800, which are spread across the globe as international coworking “chains”. We present the most popular coworking spaces: Recommended coworking spaces with several locations in Germany: The coworking provider Mindspace, founded in Tel-Aviv, offers open work areas, individual offices, meeting rooms and open areas for retreat and exchange. In addition to 24/7 access, there are coffee bars and a number of industry and community events. There are locations in Berlin, Frankfurt, Munich and Hamburg. Mindspace also has international offices in London and San Francisco. The American coworking company WeWork is represented in 65 cities worldwide. Including in Berlin, Hamburg, Munich and Frankfurt (WeWork, 2020). The areas are designed by artists, designers and engineers to create a comfortable working atmosphere. Telephone booths or brainstorming rooms encourage concentration and creativity. A reception service and events for networking complete the coworking feeling. According to a survey by Twago, the Betahaus in Berlin and Hamburg is one of the 10 most popular coworking spaces in Germany among freelancers and start-ups. Factors such as equipment, atmosphere and on-site cooperation are decisive. At Betahaus there are also events for networking, different rooms to work and the possibility to use coworking spaces of Betahaus partners all over the world (Twago, 2020).

7.5 Job Sharing The flexible working model job sharing means that at least two people share a full-­ time position in the company. Companies such as B. Deutsche Bahn or Beiersdorf have already introduced the job-sharing model. Read interviews with people who are already trying out job sharing here.

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The following variants of job sharing are available: • Job splitting: Here two or more employees share a full-time position. Accordingly, they have very similar areas of responsibility, but work on different days and are independent of each other. The two job splitting partners take care of the organization of the tasks and the division of working time. Job pairing: Two employees work a little closer together in job pairing. They also share a full-time position, but work together. The sharing partners are equally responsible for joint projects, coordinate continuously and make important decisions together. Well-functioning teamwork is particularly important in this flexible working model. Job sharing offers many advantages for employees: • A satisfactory work–life balance. • It facilitates e.g. B. the possibility of further education—in part-time studies or with online courses to deepen certain topics. • Less stress, as upcoming tasks are taken over by the job-sharing partner in the absence. • Learning effect through complementary knowledge and skills of the partner. • More time for social engagement or personal interests. • Important skills such as organizational and communication skills as well as time management are promoted. • It can also be advantageous for employers to offer employees a job-sharing model. • Addressing individual needs strengthens employee loyalty and the company’s attractiveness. • In the event of illness or termination, hardly any knowledge is lost and the work to be done is better dealt with. • Double input and problem-solving approaches per full-time position. • Work with greater care due to the four-eyes principle. • Unpopular tasks can be split up or the sharing partner is happy to take over them.

7.6 4-Days Working Week The usual working time for full-time jobs is 40 hours with 5 working days. There are now many proponents of the 4-day week, including in Sweden, France and the USA. Companies such as Amazon, Treehouse or Basecamp have already established this flexible working model. The focus there is already on giving employees the right freedom to do their work. Employees are more motivated, productivity increases and companies can counteract illness, dissatisfaction and high fluctuation due to overload.

7.7 Trust-Based Working Time The flexible working model of trust-based working time (functioning time) follows a similar concept to the 4-day week. Goals and tasks are set beforehand and no fixed working hours are defined. The focus is on the productivity and the results of the

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employee—not the office time present. Since people work differently and need more time for some tasks than others, it makes sense to take this approach. Because one thing is clear: time has never inevitably reflected productivity. This model is therefore suitable for anyone who does their job to achieve results and not to mainly spend time in the office. Advantages of trust-based working hours: • The focus is on the work and the tasks to be done, not the time spent in the office. • The organization of the team is very important. • One hundred percent independent work with a lot of trust. • The employee shows with satisfactory results that he is doing his job well. • This flexibility is also an advantage for companies, as it reinforces exactly what is decisive: the output that drives the company forward.

7.8 Sabbatical The flexible working model sabbatical, also known in German as the sabbatical year or long-term leave, is a way of having long periods of time off. You could use the time to travel, for example—with an additional salary and the prospect of continuing to work for the company afterwards. The time-out from the job can last several months or up to a year, depending on the arrangement. The idea of the sabbatical comes from the United States, but the term is inspired by the Jewish Sabbath—the seventh day of the week on which, according to the Torah, one should rest and not work. Sabbaticals are particularly suitable for people who need a longer break, either because the work was very stressful or to gain new impressions and come back from the sabbatical in a positive mood. A sabbatical can also be an opportunity to see and solve problems from a new perspective. In order to continue to receive your salary on the sabbatical, you can agree that only half of your salary will be paid to you in the preceding months, so you will then receive the remainder of your salary every month on the sabbatical. The insurance also continues to run through the employer.

7.9 Unlimited Vacation The final flexible working model of unlimited vacation gives the employee the ­freedom to decide for himself how much vacation he needs. Companies such as B. Netflix, LinkedIn or Virgin Group offer their employees unlimited vacation. Mutual respect and trust are the basis for this model. It is particularly suitable for companies where productivity can be easily measured and employees can structure their time themselves. The probability that the offer could be used is rather low.

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7.10 Case Study: Elenium Device for Secure Office Place As a building’s first point of contact—and first line of defense—entrances and lobbies are poised for a revamp in policies and procedures when it comes to fighting the spread of Covid-19. The criteria for authorized occupants could include pandemic-­ specific considerations like employee schedules, health indicators, and contact tracing. Many companies that have already returned to work are using apps and daily health surveys to screen employees before arrival. This ensures that employees experiencing symptoms or who have been exposed to a positive case of Covid-19 do not come in. In China, QR code-based immunity passports embedded within super apps like WeChat and Alipay have become ubiquitous, already rolled out in at least 200 cities. Individuals using Alipay’s Health Code fill out a form in the app and the software uses big data to generate a QR code depending on a user’s contagion risk. Those who are designated green are able to travel freely, while yellow or red indicate suggested 1- or 2-week quarantines, respectively. Elsewhere, UK-based Onfido and Germany-based IDnow have each actively engaged with the UK government to discuss the use of immunity passports, which would tie official Covid-19 test results to a user’s digital identity. Similarly, New York-based biometric start-up CLEAR, whose kiosks are seen in airports and stadiums around the country, has developed Health Pass, which links biometric identifiers to Covid-19 health information that users upload through approved test providers (Fig. 7.3).

https://www.cbinsights.com/research/report/reopening-officetech-work-post-covid/

Fig. 7.3  Health Checks When Entering the Office. (Source: Elenium)

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References Bergmann, F. (2019). New work new culture. Work we want and culture that strengthens us. Hampshire: Zero Books. CB Insights. (2020). The Post-Covid, Tech-Enabled Office In 2 Graphics. Retrieved 22.12.2020. https://www.cbinsights.com/research/tech-enabled-office-post-covid-graphics/. Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. New York: Springer. IUBH. (2020). Career Partner Group. Home Office Studie 06.2020. Retrieved August 31, 2020, from https://www.iubh-­university.de/wp-­content/uploads/2008_IUBH-­Home-­Office-­Studie_ fin.pdf. Lindner, D. (2020). Virtuelle teams und Homeoffice. Empfehlungen zu Technologien, Arbeitsmethoden und Führung. Wiesbaden: Springer. Nab, P. K. (2019). Office buildings. Health, safety and environment. New York: Springer. Twago. (2020). Retrieved from www.twago.com

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Managing New Work Through Emotional Intelligence (EI)

To handle yourself, use your head; to handle others, use your heart. Eleanor Roosevelt

8.1 Introduction to Emotional Intelligence Emotional intelligence or EI is the ability to understand and manage your own emotions, and those of the people around you. For leaders, having emotional intelligence is essential for success. In the New Work concept, it is crucial that managers and superiors have the skills, especially as the freedom and physical distance to employees can be long. Leaders with high emotional intelligence create more connected and motivated teams. The skills people with emotional intelligence possess make them effective managers. Some include the ability to inspire others, personal integrity, communication skills and comfort with building relationships, among others (Helmold, 2020). EI has become one of the key elements when it comes to leadership (Higgins & Dulewicz, 2016). One thing we know for sure is that it is a trait that can be measured and developed. But what exactly is it and how does it influence the concept of leadership as we know it today? Emotional intelligence has to do with one’s ability to both recognize and control their own emotions, while harnessing said emotions appropriately to have the most optimum reaction as situations dictate. It also has to do with one’s awareness of and sensitivity towards others’ emotions. EI is therefore an important characteristic for anyone at any level of an organization but it is particularly important for those who occupy positions of leadership. A leader’s emotional intelligence can have sweeping influence over their relationships, how they manage their teams, and all in all how they interact with individuals in the workplace. Figure 8.1 outlines the leadership attributes associated with EI.

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Motivation

Self-Regulation

Self Awareness

Empathy

Emotional Intelligence (EI)

Social Skills

Fig. 8.1  Success Factors of EI in Organizations. (Source: Author’s Source)

8.2 Self-Awareness Self-awareness means you are always fully aware of how you feel, and you understand the effect your feelings and your actions can have on the people around you. A self-aware leader maintains a clear picture of their strengths and weaknesses, and despite their position of authority and power still operates from a mindset of humility.

8.3 Self-Regulation Self-regulation prevents you from abusing your privilege of leadership to attack and/or stereotype others and making hurried or whimsical decisions that compromise your values. It calls for you to keep control of your emotions and how they affect others as well as stay committed to personal accountability.

8.4 Motivation Self-motivated leaders work consistently towards their goals, motivate their employees and they have extremely high standards for the quality of their work. They develop a healthy emotional connection to the results they seek from their efforts, harnessing them to drive them forward without being obsessive.

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8.5 Empathy Empathy is what allows you to put yourself in other people’s shows and consider their unique perspectives. This is very important when it comes to successfully leading a team or organization. Leaders with empathy actively support the career and personal growth of their team members, offer criticism without crushing the recipient, and solicit regular feedback from their employees. Such leaders are what it takes to motivate employees to perform above expectations.

8.6 Social Skills Leaders with good social skills are great at communication, which comes in very handy when it comes to getting their team pumped about a new project or objective. They are emotionally intelligent enough to receive both good and bad news with the same clarity of mind and this makes their subordinates confident enough to update them on anything. Leaders with good social skills are also great at planning, effecting and overseeing major changes in the workplace as well as resolving any arising disputes fairly and promptly.

8.7 Benefits of Emotional Intelligence on New Work Having a culture that is not emotionally intelligent can actually have a negative impact on productivity, performance, and absenteeism, to name a few. These negative impacts eventually lead to a breakdown in culture and ultimately have an effect on the bottom line (Goleman, 2020). Some benefits of emotional intelligence at the workplace include:

8.7.1 Better Teamwork Employees with higher emotional intelligence naturally work better as a team for several reasons. People who are more emotionally intelligent are better at communicating than others. They are open to sharing their ideas and listening to other people’s ideas as well. Similarly, they are less likely to take complete control since they can also think of others. Emotionally intelligent employees value their coworker’s input and ideas and are more likely to trust them as well. When they have to work in a team, they are considerate, thoughtful, and respectful, which is ideal for any employer.

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8.7.2 Better Workplace Environment A workforce that is made up of emotionally intelligent employees helps boost morale in the workplace. The company culture also tends to be much stronger when the office is full of staff who respect and get along with one another. What’s more, the office becomes an area where people enjoy what they do as well as enjoy the company of the people they work with.

8.7.3 Easier Adjustments Companies should never stay stagnant. A company is more likely to experience change when their employees are focusing on ways to improve both themself and the company. Even though employees usually know that changes within an organization are what is best for the company, that doesn’t mean everyone will be open to it. Employees with higher emotional intelligence, however, find it easier to adjust and tend to embrace the change and grow with the company. This personality trait also tends to be contagious, thereby having a positive effect on other employees.

8.7.4 Greater Self-awareness People who are emotionally intelligent know their strengths and weaknesses. They can take feedback and use it to grow and improve as a person. Managers are used to dealing with people who become defensive when they receive constructive feedback, which can lead to frustration and get in the way of productivity. Other times, employees have a hard time understanding their limitations. People with high emotional intelligence are self-aware and therefore know what they are capable of achieving in a certain amount of time while others tend to over-­ promise and under-deliver.

8.7.5 Greater Self-control Emotionally intelligent people know how to handle difficult situations. Whether it is dealing with a superior who doesn’t like the quality of your work or a client who is unhappy, there are bound to be situations at work that are not easy to deal with. In these situations, it’s important to stay calm and avoid an emotional outburst. People with high emotional intelligence know that acting irrationally or negatively will only cause the situation to escalate. They can practice restraint and display their emotions in a controlled manner only when it is called for. Many companies have yet to realize the significance of hiring for emotional intelligence. As a result, there are many companies out there with teams that do not

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feel valued. Hiring emotionally intelligent talent can help your organization stand out among competitors. By focusing on each person that makes up the team, you can gain a competitive advantage over other companies who are wondering why their team members don’t get along or lack motivation. Now that you understand the benefits of emotional intelligence at the workplace, you can take a look at your existing talent and see who displays the traits previously mentioned. You might want to think about giving them leadership roles, if they aren’t in one already. When choosing an employee to handle a project or team, fight the urge to pick the one with the most experience and try going for the one with the highest emotional intelligence instead. Finally, update your interview process. While questions about education, experience, and technical issues are still important, think about adding questions that allow a person to show their emotional intelligence. Watch how they answer these questions and think about them when you’re choosing who to hire. By doing so, you’ll have a team that stands out from the rest in no time.

8.8 Case Study: Coworking Area at Deutsche Bahn Deutsche Bahn (DB) is opening its “everyworks” coworking area at Berlin Central Station to all travellers, commuters and station visitors. Interested parties can immediately book a job at short notice via an app and bill to the minute. “Flexible, self-determined work is becoming more and more important these days. Our coworking offer is our answer to the rapidly growing demand and changing office models. We are convinced that everyworks will also be well received in the Corona period. Berlin Central Station as a location is ideal as a central, highly frequented mobility hub. In the future, we want to offer coworking at other stations”, said Dr. Meike Niedbal, Head of “Smart City” at DB Station & Service AG. DB‘s first coworking offer offers around 300 workplaces on 1500 square metres of office space on the tenth floor of Berlin Central Station. The entrance is on Europaplatz. Customers use their own end devices, but can borrow different charging cables if necessary. WLAN is available on the entire area. For undisturbed phone calls, there are telephone boxes as a retreat. Particularly concentrated work is possible in the so-called focus area. The “everyworks” app can be downloaded free of charge from the Apple Store and Google Play Store and enables access to one of 115 workstations that can be booked flexibly with just a few clicks. After successful registration, customers can book a so-called minute seat. At the opening it costs 16 cents per minute. Check-in takes place on the ground floor. Visitors are given 5 min on their time account to find a suitable seat. Coffee, tea and water are included during the stay. In addition to the minute seats, customers can also rent meeting rooms equipped with screens and whiteboards. There are also around 150 additional workplaces available for long-­ term tenants. Minute Seat users have access to the area from 8:30 a.m. to 6:00 p.m., and the coworking area is open around the clock for office tenants. Of course, DB

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Fig. 8.2  Coworking Area of DB in Berlin. (Source: DB, https://www.deutschebahn.com/de/ presse/pressestart_zentrales_uebersicht/Aussicht-­und-­Kaffee-­inklusive-­Die-­DB-­eroeffnet-­ihren-­ ersten-­C oworking-­B ereich-­a m-­B erliner-­H auptbahnhof%2D%2D5559598?view=&conten tId=1170726)

has taken extensive measures to protect against Corona in the coworking area, including a reduced occupancy of the workplaces. Coworking at train stations is a project of the “Smart City” initiative at DB. Smart City aims to provide environmentally friendly offers for a sustainable city and good networking of transport infrastructure and mobility. In the long term, further coworking offers are to follow at central train stations (Fig. 8.2).

References Goleman, C. (2020). Emotional intelligence: Improve your emotional agility and social skills for a better life, success at work and happier relationships. Discover why EQ can matter more than IQ (EQ 2.0). Independently published. Helmold, M. (2020). Lean management and kaizen. Fundamentals from cases and examples in operations and supply chain management. New York: Springer. Higgins, M., & Dulewicz, V. (2016). Leading with emotional intelligence. Effective change implementation in today’s complex context. Basingstoke: Palgrave Macmillan.

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Innovation Management as a Driver for Changing Work Styles

Innovation distinguishes between a leader and a follower. Steve Jobs

9.1 Introduction to Innovation Management “Innovation” comes from the Latin word “innovare” and stands for renewal or reformation. From an economic point of view, innovation is something complex and new that brings economic benefits for an organization or and for the company. Innovation management includes elements such as ideas, inventions and diffusions (Müller-Prothmann & Dörr, 2019). Innovations include the generation of ideas and the constant validation and review of these ideas as part of a structured innovation process (Nelke, 2016). Innovation Management comprises three levels, as shown in Fig. 9.1. In addition to the operational level, the working level, there are the strategic and normative levels (Stibbe, 2019). Innovations are decided on the normative and strategic level and put into practice on the operative level (Helmold & Samara, 2019). Terms that are often used in connection with innovation are ideas, collections of ideas and inventions. An invention or invention must be differentiated to the extent that it has not yet been exploited and used as a creative achievement of a new problem solution compared to innovation. It is the same with the idea, which is a creative thought of something new. In all cases, “new” can always be seen relatively. It can be new for this situation, the company or the world. In particular new developments such as New Work, Industry 4.0 or increasing globalization have an important impact on innovations and innovation management (Granig, Hartlieb, & Heiden, 2018). Of central importance are the collection of ideas, the selection and the decision which ideas are implemented. This process must be managed by the higher management (Helmold & Samara, 2019).

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_9

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Fig. 9.1  Innovation management levels. (Source: Author’s Source)

Management is a term that is used constantly in companies. It stands for the management of a task and for the coordination of activities in order to achieve a defined purpose and goals. Accordingly, innovation management is the structured promotion of innovations in companies and includes tasks in the planning, organization, management and control of these innovations. Innovation management deals with all measures to favour innovations in organizations and to generate benefits, for example: –– New products and services to conquer new markets –– Improved products and services to stand out from the competition –– Improvement of internal processes in order to strengthen the company –– Innovations to from the inside or to save costs –– Development of new business models to use new sources of income –– New Work Styles that enable Employees to achieve a better performance

9.2 Technical Relevance and Attractivity Innovations are usually complex undertakings with a high expenditure of technology, use of resources and therefore usually cause very high costs and investments. It is therefore imperative that the company management sustainably evaluate every innovation with regard to its prospect of success, and this with regard to strategic relevance, technology expenditure, benefits and resource intensity. Ideas and possible innovations always require a strategic and resource-based review (Pfeiffer, Metze, Schneider, & Amler, 1991; Pfeiffer & Weiß, 1995). Figure 9.2 shows the relationship between strategy and resource use.

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9.4  Resource Intensity

Strategic Relevance and Attractivity

high

Experiment

Investment

Optimisation Identification

Elimination

low

low

Resource Intensity

high

Fig. 9.2  Relationship between strategy and resources. (Source: Author’s Source)

9.3 Strategic Relevance of Innovation Management The strategic relevance and attractiveness of the innovation is the sum of all technical and economic advantages that can be gained by exploiting the strategic development opportunities in a technology area. The technology attractiveness depends on the one hand on the technology properties (potential side) and on the other hand on the requirements of (future) users (demand side). The two sizes of the technology portfolio, technology attractiveness and resource strength, each represent a (highly) aggregated evaluation result in relation to deeper individual factors. Experts envisage the following things to check and determine technology attractiveness (Helmold & Samara, 2019): –– Further development potential: To what extent is a technical further development and thus performance increases and/or cost reductions possible? –– Range of application: How can the number of possible areas of application of the technology and the quantities per area of ​​application be assessed? –– Compatibility: What negative or positive effects can be expected in user and surrounding systems (innovation obstacles, drivers)?

9.4 Resource Intensity The strength of the resources expresses the extent to which the assessed company has the prerequisites in comparison to its potential competitors to make the considered technological alternative successful, i.e. H. in a timely manner and in the form of marketable products. In other words, it is a measure of a company’s technical and economic strength or weakness in relation to a technology relative to its

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competitors. Experts in tourism propose the following three indicators to determine the strength of resources (Helmold & Samara, 2019): –– Technical-qualitative degree of mastery: How is our technology-specific know-­ how to be assessed in relation to the competition, is there a lead or lag in development? –– Potentials: To what extent are financial, human and material resources available to exploit the existing further development potential of the technology? –– (Re) action speed: How quickly can the evaluating company exploit the further development potential of the technology compared to the competition?

9.5 Future Potential of Innovations In addition to the studies described above with regard to strategic relevance and use of resources, innovations must be subjected to a future prognosis in which the future prospects of success are evaluated. Scenario analyses can be used to forecast the development of the user side (Pfeiffer et al., 1991). Pfeiffer and his coauthors also emphasize the great importance of a higher-level system and environment perspective that extends beyond individual technologies. On the one hand, this means that technical peripheral systems are included in the analysis (e.g. the establishment of a methanol or hydrogen supply infrastructure required for the implementation of fuel cell drives for cars). On the other hand, non-technical framework conditions are also decisive for the technology assessment (e.g. the possible tightening of exhaust gas legislation). In the context of the identification of innovations, the necessary resources and strategic relevance are still relatively low. In this phase, ideas are collected, evaluated and selected. In the next step, the strategically relevant ideas must be tested (Fig. 9.2: Experiment). This testing usually takes place through experiments. However, observations, workshops, panels or analysis groups can also be used. With the selection of strategically important innovations, the use of resources in companies automatically increases. Primary materials have to be bought, the products have to be mass-produced and marketing towards customers requires proactive marketing. This phase of the investment involves a very high expenditure of resources and thus financial resources (equity or debt). After the investment phase, optimization begins so that fewer resources are required. The optimization takes place through standardization, unification, volume effects or technical innovations. In the last step, if it turns out that the innovation no longer has any strategic relevance, all activities are eliminated and shut down (Helmold & Samara, 2019).

9.6 Fields and Tasks of Innovation Management in New Work Innovation management forms two key pillars. On the one hand, innovation management includes the creation of suitable and structured framework conditions so that ideas arise everywhere in the company and are implemented into successful

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9.6  Fields and Tasks of Innovation Management in New Work

innovations. It is very much about organizational development activities. And secondly, the actual innovation, the active search, development and implementation of ideas. This requires creativity and appropriate project management, for example. Innovation management is very versatile and multifaceted. The fields of action of innovation management include the following elements: –– Future management: Identification of trends and future opportunities and risks –– Development of the innovation strategy and planning of the innovation activities, for example with an innovation roadmap –– Organization and distribution of roles in innovation management, such as decision-­making structures and process ownership –– Idea management for finding, developing and evaluating ideas –– Innovation process for transforming an idea into a successful innovation: concept development, business plan, solution development, prototypes, implementation and marketing –– Creating an innovation culture that promotes innovation –– Portfolio management and innovation controlling (e.g. innovation indicators) to control innovation activities –– Dealing with patents and property rights –– Open innovation and innovation networks to use external innovation sources and resources. –– Management of change (change management) in the course of innovation projects Figure 9.3 depicts innovations in the area of New Work. Agile leadership is the craft of creating the right context for self-organization. An environment where agile teams work together, learn from each other, get quick feedback from users, and

Flexible Pay Models

Digital Communication Systems Virtual Teamworking

Flexible Time Models

Network Organisations

Agile Leadership

Design Thinking

Innovations New Work Concepts

Fig. 9.3  Innovation elements in new work. (Source: Author’s Source)

New and flexible Office Concepts

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focus on quality and continuous learning. Another innovation is virtual and network organizations, in which teams collaborate across countries, time zones and languages. Innovations are also visible in the areas of flexible time models or flexible pay models. Finally, New Work triggered innovations of virtual team working tools, design thinking and new office concepts.

9.7 Case Study: Digital Innovation in a Bakery in Tokyo Figure 9.4 shows an example of New Work in a bakery store in Tokyo. The device helps customers and employees to focus on relevant activities, rather than non-­ adding value processes. The customer can place the selected goods on the scanning device. A camera is identifying the goods purchased and showing the price. The customers can pay easily with cash or credit card. The device helps employees to focus their activities on giving advice to customers rather than payment execution. Additionally, the process improved the transaction time significantly. Mo waiting time anymore for customers. Thus, an innovation helped to create more added value to customers.

Fig. 9.4  New work innovation in a bakery in Tokyo. (Source: Author’s Source)

References

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References Granig, P., Hartlieb, E., & Heiden, B. (2018). Mit Innovationsmanagement zu Industrie 4.0: Grundlagen, Strategien, Erfolgsfaktoren und Praxisbeispiele. Wiesbaden: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Müller-Prothmann, T., & Dörr, N. (2019). Innovationsmanagement: Strategien, Methoden und Werkzeuge für systematische Innovationsprozesse. München: Hanser. Nelke, A. (2016). Kommunikation und Nachhaltigkeit im Innovationsmanagement von Unternehmen: Grundlagen für die Praxis (Wirtschaftsförderung in Lehre und Praxis). Wiesbaden: Springer. Pfeiffer, W., Metze, G., Schneider, W., & Amler, R. (1991). Technologie-Portfolio zum Management strategischer Zukunftsgeschäftsfelder. 6. Auflage. Göttingen. Pfeiffer, W., & Weiß, E. (1995). Methoden zur Analyse und Bewertung technologischer Alternativen. In E. Zahn (Ed.), Handbuch Technologiemanagement (pp. 663–679). Stuttgart: Schäffer-Poeschel. Stibbe, R. (2019). CSR-Erfolgssteuerung. Den Reformprozess verstehen, Reporting und Risikomanagement effizient gestalten. Wiesbaden: Springer.

Diversity and New Work Teams

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He who cannot be a good follower cannot be a good leader. Aristotle

10.1 Definition as Success Factor 10.1.1 Definition of Diversity The concept of diversity has its origins in the US civil rights movement, which fought against racism against people of colour. Diversity thus initially stood for the creation of equal opportunities for groups who are disadvantaged according to certain characteristics. In the USA, this resulted in the Anti-Discrimination Act and the Affirmative Action to promote disadvantaged groups according to the criteria of race, gender, skin colour, ethnic origin, age, disability or religion. The civil rights movement of the USA had a great influence on the development of further social movements of previously disadvantaged and discriminated groups, e.g. B. on the movement of the Native Americans. The European Union has also used the concept as a model since the late 1990s. Since 2006, the aspects of diversity have been taken into account in German legislation in the General Equal Treatment Act and are intended to protect people from these categories from discrimination. However, research into and awareness of these issues was not tied to the concept of diversity. In social psychology, heterogeneity had been the central research-­ leading term for the dimensions examined since the late 1940s. For decades, social psychology has been researching the mechanisms of the emergence and effects of social categorization and stereotyping, social comparisons, identity formation in social groups and intergroup processes. The effects of belonging to social groups have been extensively researched, especially with regard to educational and

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performance behaviour, processes of social advancement and decline, crime and gang formation, health and working life. In this respect, the results of group-related research were of extraordinary importance for education and social medicine. Diversity management as a method of corporate human resource management and workplace management. It aims to use the diversity of employees constructively, efficiently and profitably. A well-known representative of diversity management in Germany is the economic policy initiative Charter of Diversity. The Diversity Charter is a voluntary commitment published in 2006 and an association under the patronage of the Federal Chancellor, which advocates a working environment free of prejudice. By signing the Diversity Charter, employers declare that they will create or promote equal opportunities for their employees. In 2018 there were 3000 signatories (as of September 2018). In addition to well-known large corporations, small and medium-sized companies, academic and social institutions and authorities (Charta der Vielfalt, 2020). Workplace these days has become increasingly universal, there has been increasing awareness of how diversity could be management and this has extended beyond the demographic characteristics of race, gender, and age and education (MaiorescuMurphy, 2020). Countries around the world are gaining larger populations and becoming diverse. Diversity has meanwhile become a crucial topic to strive excellence and meet customer expectations in industry and academia (Rahnfeld, 2019). Although diversity is largely promoted in multi-national companies (MNC), it is important to understand that diversity must be integrated in any organization, enterprise or institution. MNC widely promote their diversity activities through social and online networks as a way to promote the employer and company branding (Maiorescu-­Murphy, 2020). Diversity has enabled up-surging of creativity, innovation and improved problem solving, which in turn boost the effectiveness of the organization. Organization that has good diversity workplace will generate an increase to their market share if they take care of their diverse customers. However, the fact remains that diversity on its own won’t improve business performance. Discrimination is becoming wide spread in the workplace and is harmful to organization. Any modern business goals should always consist of abolishing all kinds of discrimination around their work environment and create a positive environment that cuddles diversity. It is vital to get a clear vision that discrimination in the work place is not narrowed to just a selected group of individuals but rather it affects any person regardless of his or her race, religion, culture or sexual orientation. Therefore, all organizations have every reason to institute effective diversity management practice that yields the benefit of a diverse workforce. Companies must enforce diversity because their diversity will improve the workplace by introducing new talents, interest, and viewpoints. Hence, it is possible to achieve organizational excellence and customer satisfaction. Any organization that fails to welcome cultural diversity in its system and who did not take swift action in abolishing discrimination and injustice will horribly affect their employees and clients. Therefore, hotel thus has to redefine their missions, management practice, strategies, cultures, markets,

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customers and stakeholders. Eventually, the main strategy is to design, develop, and maintain diversity in the workplace and create a system that enables the employees get attached to the corporation. Diversity must be integrated into the company’s mission, vision and values. Many companies therefore introduce diversity programs and activities. These activities will help organizations reach talent in traditionally undertapped demographics. They can also encourage innovation, according to a Forbes Insight report; and they can make a company a more desirable option to candidates. Two-thirds of respondents in a recent survey from career community site Glassdoor said they viewed diversity as an important factor when assessing a job. However, simply implementing a diversity program, without careful attention to its composition and desired effect, won’t significantly improve an organization’s organizational change efforts. After years of diversity and inclusion program implementation and research, it’s clear that several key factors can potentially make—or break—a workplace diversity and inclusion program. Although the specifics may vary from organization to organization, for a diversity program to be truly successful, employers need to include several structured elements as shown in Fig.  10.1 (Talent Intelligence, 2015).

10.1.2 Diversity Needs Analysis Without a proper assessment (Diversity Needs Analysis) companies may not be able to need to determine what needs to change. An assessment can help your organization accurately identify what elements its diversity and inclusion program should include. SHRM suggests potentially using focus groups and employee surveys to gauge current employee sentiment—and obtain ideas for possible solutions.

10.1.3 Diversity Training Programme Employees and particularly managers who will oversee diversity programs must have a solid diversity understanding and framework to work with. A diversity training program can also help convey to your staff, at all levels, that your organization is placing a serious emphasis on diversity and inclusion. Workforce magazine recommends focusing diversity training programs on clear metrics, experiential learning and sharing an individual benefit for all involved parties to help make diversity program training efforts successful.

10.1.4 Career-Focused Leadership and Diversity Fostering growth from within can help enhance employee retention and provide additional support for diversity efforts. Mentoring programs, according to Scientific American, can be one of the most successful ways to increase the amount of white

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Age

Political Beliefs

Gender

Personality Type

Ethnicity

Location

Race

Diversity Elements Parental Status

Physical Ability

Physical Characteristics

Religious Beliefs

Marital Status

Ability Education

Income

Fig. 10.1  Elements of diversity. (Source: Author’s Source)

and black female and Latino and Asian female and male managers at an organization—potentially by nearly 40%.

10.1.5 Objectives for Diversity A general stance to increase diversity is likely far too vague to be very successful. Companies that create clearly outlined goals have a better chance of developing effective programs and seeing real change. Take, for example Shell. The global energy and petrochemical company’s diversity program goals include increasing the proportion of women in senior management roles to at least 20% and placing local residents in more than half of the senior management positions in countries it operates in.

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10.1.6 Regular Diversity Reviews Goals are only effective if you’re able to determine if you’re meeting them. An organization’s management team and CEO, according to SHRM, should regularly gauge its diversity and inclusion program’s success, based on its pre-determined goals. If an element isn’t working, you’ll then be able to tweak the program as needed to see greater results. If your organization hasn’t measured its diversity and inclusion status recently, that should be your first step in either creating a new diversity program or revising your current one (Fig. 10.2).

10.2 Behavioural and Institutional Focused Diversity Diversity in the workplace is vital for employees because it manifests itself in building a great reputation for the company, leading to increased profitability and opportunities for workers. Workplace diversity is important within the organization as well as outside. Diversity can be distinguished into the categories of behaviour and institutional elements as shown in Table 10.1. Behavioural diversity can be described more as the process and style of doing (task oriented), where institutional diversity is referring to certain facts and states. Promoting equality and respecting diversity help to ensure that people are valued and have the same access to all opportunities whatever their differences. The Act also provides protection for individuals who experience discrimination by association with someone who has a protected characteristic.

Needs Analysis

Reviews and Recalibration

Diversity specific Objectives

Need for Diversity Elements

Training Programme

Career and Diversity focused Leaderships

Fig. 10.2  Process of implementing diversity. (Source: Author’s Source)

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10  Diversity and New Work Teams Behavioural diversity Work styles Thinking styles Learning styles Communication styles Aspirations Beliefs and values Change in attitudes Expectations of employees Living style

Institutional diversity Gender Race Ethnicity Family status Economic background Geographical background Religion Sexual orientation Physical ability

Source: Author’s own table

10.3 Diversity and Inclusion In the recent years it is visible that the focus and awareness of diversity and inclusion is permanently increasing. Society, enterprises and organizations face many challenges in identifying and truly understanding the unique differences among people. From the #MeToo movement to various headline scandals, diversity and inclusion have been brought to the forefront of workplace dialogue. However, the words “diversity” and “inclusion” are often confused. There is little attention paid to the nuances of the two and the implications each has on people-related strategies and practices. Gallup’s research indicates recognizing that diversity and inclusion are very different things is the first step in the journey towards creating a uniquely diverse and inclusive workplace culture.

10.4 Equal Pay Many companies have diversity home pages on which they report out the equal pay situation. Apple’s diversity slogan is “Different together”. According to the webpage, Apple achieved pay equity in every country where they operate. Women nowadays earn the same as men when performing similar work. In the United States, underrepresented minorities earn one dollar for every dollar a white employee earns. Every year, Apple examines the compensation employees receive and make adjustments to ensure that we maintain pay equity. As part of the commitment to achieving pay equity (Apple, 2020).

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10.5 Case Study: Reverse Mentoring in BMW 10.5.1 Digitization and Reverse Mentoring The car manufacturer BMW has started a digitization initiative in the company’s own vocational training. This also includes a modern technological work environment. With this, the company wants to secure the next generation of the so-called Generation Z. The digitization offensive in the vocational training of the > BMW Group is based on three pillars: mobile state-of-the-art devices that are intended to appeal to digital natives, new digital collaboration and learning platforms that are intended to make knowledge acquisition and collaboration faster and more self-­ directed, as well as a wide range of talent promotion tailored to the individual. The company provides the trainees with surface laptops with Office 365, multifunctional headphones and smartphones as well as various communication platforms for mobile collaboration. Digital teaching and learning formats and “Lern2Go” are intended to enable modern teaching of learning content. Apprentices and dual students have access to advanced training programs such as “Udacity”, with which they acquire additional skills and receive “nano degrees”, for example in the field of artificial intelligence.

10.5.2 Digital Natives as Change Agents In addition, the individual knowledge of the digital natives is integrated into the daily work processes. Through what is known as reverse mentoring, the junior staff act as “change agents” to support their experienced colleagues, for example with agile project management, the use of digital collaboration platforms and the use of social networks. In addition, BMW has integrated three further apprenticeships with specializations in the fields of IT and electronics as well as 15 dual MINT bachelor courses. The existing 27 job profiles are also continuously being adapted in a future-­oriented manner and are increasingly taking up content such as big data/data analytics, agile working methods, additive manufacturing processes, electrification or automation.

References Apple. (2020). www.apple.com. Retrieved September 4, 2020, from https://www.apple.com/ diversity/ Charta der Vielfalt. (2020). www.Charta-­der-­vielfalt. Retrieved August 21, 2020, from https:// www.charta-­der-­vielfalt.de/ Maiorescu-Murphy, R.  D. (2020). Corporate diversity communication strategy: An insight into American MNCs’ Online Communities and Social Media Engagement. New  York: Palgrave Macmillan. Rahnfeld, C. (2019). Diversity-management. Zur sozialen Verantwortung von Unternehmen. Wiesbaden: Springer. Talent Intelligence. (2015). The top 5 elements your diversity program should include posted by Talent Intelligence. Retrieved August 21, 2020, from https://www.talentintelligence.com/blog/ the-­top-­5-­elements-­your-­diversity-­program-­should-­include

Artificial Intelligence (AI) as Impulse for New Work

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Now the playbook is we build AI tools to go find these fake accounts, find coordinated networks of inauthentic activity, and take them down; we make it much harder for anyone to advertise in ways that they shouldn’t be. Marc Zuckerberg

11.1 Industry 4.0 Production and operations systems are not like they used to be. The twenty-first century will confront enterprises and manufacturing companies with completely novel generations of technologies, services, and products based on computer technologies. In order to meet competition on global markets and to ensure long-term success, the companies need to adapt to shorter delivery times, increasing product variability and high market volatility, by which enterprises are able to sensitively and timely react to continuous and unexpected changes. One of the major cornerstones to meet these challenges is the implementation of digital information and communication technologies into production systems, processes and technologies, which allow novel developments by combining the physical world and fast data access and data processing via the Internet (Industry 4.0). Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution. Industry 4.0 fosters what has been called a “smart factory” as shown in Fig.  11.1. Within modular structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things,

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Fig. 11.1  Industry 4.0 evolution. (Source: Adopted from Industry 4.0: The Top 9 Trends For 2018 (Liubomyr (El.) Kachur))

cyber-physical systems communicate and cooperate with each other and with humans in real-time both internally and across organizational services offered and used by participants of the value chain. There are four design principles in Industry 4.0. These principles support companies in identifying and implementing Industry 4.0 scenarios (Helmold & Samara, 2019): • Interconnection: The ability of machines, devices, sensors, and people to connect and communicate with each other via the Internet of Things (IoT) or the Internet of People (IoP) • Information transparency: The transparency afforded by Industry 4.0 technology provides operators with vast amounts of useful information needed to make appropriate decisions. Interconnectivity allows operators to collect immense amounts of data and information from all points in the manufacturing process, thus aiding functionality and identifying key areas that can benefit from innovation and improvement • Technical assistance: First, the ability of assistance systems to support humans by aggregating and visualizing information comprehensively for making informed decisions and solving urgent problems on short notice. Second, the ability of cyber-physical systems to physically support humans by conducting a range of tasks that are unpleasant, too exhausting, or unsafe for their human coworkers • Decentralized decisions: The ability of cyber-physical systems to make decisions on their own and to perform their tasks as autonomously as possible. Only in the case of exceptions, interferences, or conflicting goals, are tasks delegated to a higher level

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11.2 Artificial Intelligence (AI) in Lean Management 11.2.1 Lean AI Tools Will Lead to a Competitive Advantage In the field of computer science, artificial intelligence (AI), sometimes called machine intelligence, is intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans and other animals. Figure  11.2 depicts nine lean elements of artificial intelligence which can be lead to a competitive advantage across the value chain (Helmold & Samara, 2019).

11.2.2 Autonomous Robots An autonomous robot is a robot that performs behaviours or tasks with a high degree of autonomy (without external influence). Autonomous robotics is usually

Autonomous Robots Virtual Production and Supply Chains

Big Data

Augumented Reality

Additive Manufacturing

Lean Simulations

New Work and in Artifical Intelligence

Cloud Computing

Systems Integration

Internet of Things Cybersecurity

Fig. 11.2  Trends in AI. (Source: Author’s Source)

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considered to be a subfield of artificial intelligence, robotics, and information engineering.

11.2.3 Virtual Production and Supply Chains Virtual production tends to be used to help visualize complex scenes or scenes that simply cannot be filmed for real. In general, though, virtual production can really refer to any techniques that allow filmmakers to plan, imagine, or complete some kind of filmic element, typically with the aid of digital tools.

11.2.4 Lean Simulations Lean simulations include a set of hands-on experiments to teach employees about systems and process improvement in all areas of the value chain. Lean simulations can focus on design, manufacturing, capacity planning or supply chain design. Purpose of simulations is to understand the implications of input variables and alternations of the value chain elements.

11.2.5 System Integration Lean integration is a continuous improvement methodology for bringing disparate data and software systems together. The goal is to maximize customer value. Lean integration is a management system that emphasizes eliminating waste as a sustainable data integration and system integration practice.

11.2.6 Internet of Things The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.

11.2.7 Cybersecurity Cybersecurity is the protection of internet-connected systems, including hardware, software and data, from cyberattacks. In a computing context, security comprises cybersecurity and physical security—both are used by enterprises to protect against unauthorized access to data centres and other computerized systems.

11.3  Case Study: Google’s Self-Driving Cars

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11.2.8 Cloud Computing Cloud computing is a type of computing that relies on shared computing resources rather than having local servers or personal devices to handle applications. In its most simple description, cloud computing is taking services (“cloud services”) and moving them outside an organization’s IT system and environment.

11.2.9 Additive Manufacturing Additive manufacturing (AM) is the industrial production name for 3D printing, a computer-controlled process that creates three-dimensional objects by depositing materials, usually in layers. The official industry standard term is the ASTM F2792 for all applications of the 3D technology. It is defined as the process of joining materials to make objects from 3D model data, usually layer upon layer, as opposed to subtractive manufacturing methodologies.

11.2.10 Augmented Reality Augmented reality (AR) is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory and olfactory.

11.2.11 Big Data Big Data is a phrase used to mean a massive volume of both structured and unstructured data that is so large it is difficult to process using traditional database and software techniques. In most enterprise scenarios the volume of data is too big or it moves too fast or it exceeds current processing capacity.

11.3 Case Study: Google’s Self-Driving Cars Research into self-driving cars is not a new phenomenon. In the late 1950s, the first known thoughts on self-driving vehicles were described in Popular Mechanics magazine by a mechanic who argued that altering a roadster to both start itself and back itself into a driveway would be relatively straightforward. Later that year, a GM analyst revealed in Popular Science magazine that the company was already investigating embedding highways with cable and radio-control boxes as a means of developing an infrastructure to support driverless cars. Despite all of the theoretical research into the subject, self-driving cars did not become a reality until 1968. The first physical breakthrough in driverless car technology was the design of a car that

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used sonar and gyroscopes to drive, steer, and stop an automobile. In 1968, The Cornell Aeronautical Laboratory created the “Urbmobile”, an electric car that could be driven on the road but could also glide along a subway-style track that utilized roadside guides, magnetometers, magnetic nails, and internal computers. The largest breakthrough came years later, however, with the announcement from Google, Inc. of the Google Car in 2010. With the distinctive sensor and camera nub lodged on top of a Toyota Prius, the Google Car quickly became operational and present on roads across the United States. Shortly thereafter, media coverage of the Google Car became increasingly prevalent in addition to promotional commercials demonstrating the benefits of the car (Google, 2019). While the benefits demonstrated in the videos seemed to be promising, the Google Car’s entrance into the market seemed a far leap away from Google’s core business. Google Inc. specializes in Internet-­ related services and products, with the mission to organize the world’s information and make it universally accessible and useful. In 1998, Larry Page and Sergey Brin, two Stanford University computer science graduate students, created a search engine that uses back links, or incoming links, to a website or web page, to determine the importance and therefore rank individual web pages during a web query. Existing competitors, like Yahoo and AOL, on the other hand, were directories of other websites, organized in a hierarchy, as opposed to a searchable index of pages. This allows the Google search process to return more relevant results rather than simply a ranked list of preferred sites. In 1999, Google secured funding from Sequoia Capital and Kleiner Perkins Caufield & Byers, Silicon Valley’s two leading venture capital firms (Google, 2019). Only 1 year later, Google became the world’s largest search engine with over a billion pages in its index, surpassing industry giants such as Yahoo. Google’s dominance of the search market continues today as Google maintains a 67% share of global searches. While Google Inc. began as a company specializing in search, it quickly expanded into other product areas. In 2004, Google launched Gmail, an email client which became the world’s largest email provider by 2012 with an estimated 425 million active users. Expanding into the online video domain, Google acquired YouTube in 2006 for $1.65 billion, which reaches over 1  billion unique visitors each month. In 2008, Google launched Chrome, a web browser, and Android, an operating system for mobile devices. In both of these areas as well, Google dominates the market, with a 50% and 68% of the market share, respectively (Miller & Wald, 2013). In 2010, Google announced that the prototype of a driverless car—the Google Car—was completed (Google, 2019). According to Google executives at the time, the goal of the Google Car was to “… help prevent traffic accidents, free up people’s time and reduce carbon emissions by fundamentally changing car use”. With a team assembled consisting of engineers with experience in vehicle technology from the DARPA Challenges, a series of driverless vehicle races sponsored by the US Government, Google was finally able to bring the driverless car phenomenon to reality. The Google Car is a sophisticated system that integrates proprietary hardware and software, using video

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cameras, radar sensors, and a laser range finder to visualize traffic and detailed maps taken from Google Maps to enable navigation between destinations. Google’s data centres process the incoming data relayed from the sensors and cameras mounted on the Google Car in order to provide the car with useful information about its environment that is later translated into the physical operation of the vehicle. The key to the Google Car’s technological capabilities is the laser range finder mounted on the roof of the modified Toyota Prius, allowing for real-time environmental analysis. In addition, the Google Car is equipped with four radars and a velodyne 64-beam laser placed strategically around the car to accurately generate a three-dimensional map of its environment. A camera detects traffic lights while a GPS, wheel encoder, and inertial measurement unit control the vehicle’s location and logs car movement. The software system synthesizes laser measurements produced from the laser beam with high-resolution maps of the world, producing dynamic data models then translated into the physical operation of the vehicle by the car’s internal software system. Altogether, the system allows for seamless operation of the vehicle that adjusts to its dynamic environment without the intervention of a driver. In addition to the generic driverless capability, the Google Car’s system also adjusts for local traffic laws and environmental obstacles in real-time. For example, if the Google Car approaches a four-way intersection and senses that the driver with the right of way does not move, the Google Car inches forward slightly to indicate to other drivers the intentions of driving through the intersection (Miller & Wald, 2013). Altogether, the technology and adaptation to local conditions not only allows for driverless transportation, but also increases safety on the road. Since its introduction, the Google Car has completed 200,000 miles of accident-free computer-led driving, beyond one incident that was arguably caused by another driver. The road test results for the Google Car indicate that the Google Car obeys all of the rules of the road and adjusts to its dynamic environment in real time with no problems. Thus, with this integrated technology, the car has the capability of being safer than a human driver. The Google Car has the potential to have a profound effect on energy consumption, efficiency, and traffic accidents. With subsequent productivity increases, and decreases in costs, the Google Car represents a potentially revolutionizing technology. It is precisely this potential, however, that creates a threat for Google to sustaining a long-term competitive advantage in the driverless car space. As the Google Car may radically shift the structure of affected industries and raises serious privacy concerns, vulnerable industries and consumer groups threaten the viability of the project. Thus, the Google Car faces challenges far greater than competing car manufacturers alone. In squaring off against politically and economically powerful industries that are facing their demise, can the Google Car survive? Can the will to revolutionize driving outweigh the costs of potentially ruined industries and massive unemployment? Who will win the war of the road?

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References Google. (2019. Retrieved from www.google.com Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Miller, C. C., & Wald, M. L. (2013). Self-driving cars for testing are supported by U.S. New York Times. Retrieved Decmber 10, 2019, from https://www.nytimes.com/2013/05/31/technology/ self-­driving-­cars-­for-­testing-­are-­supported-­by-­us.html

Lean Management and New Work Concepts

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Progress cannot be generated when we are satisfied with existing situations. The Toyota style is not to create results by working hard. People don’t go to Toyota to work they go there to think. Without standards, there can be no improvement. Taiichi Ohno

12.1 Lean Management as Intellectual Platform for New Work Ideas The lean philosophy promotes, like the New Work approaches, an open, flexible and appreciative culture and speaks against a hierarchical, rigid organizational structure (Helmold, 2020; Ohno, 1990). It is very important to understand where an organization is located and what level of maturity in lean management it has reached so far. Setting up football tables or expanding break rooms in creative leisure zones will not ensure overnight or even years that a hierarchical company with traditional leadership will become a modern flagship company for agility, self-organization or new work. In addition to managers, employees must also be open to changes as the lean management cultures empower employees with freedom and choice within a set environment. Coupling the meaning and the exchange on an equal footing is crucial to promote acceptance and identification, otherwise there will be a lack of understanding and lack of interest among managers, employees and stakeholders (Helmold, 2020). Lean management is therefore a modern concept for new work and process optimization in the own organization and the entire the value chain (Helmold & Samara, 2019). Lean management is focusing on making inefficiencies (waste) transparent and on altering these into value-adding activities (Helmold & Terry, 2016; Ohno, 1990). The value chain reaches in this context from the upstream (Suppliers) over the own operations to the downstream side (Customers) (Slack,

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_12

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1995). Inefficiencies are everything, e.g. an activity, a process, a product, which is considered as something for which the customers are not willing to pay for or to spend financial means. The customer is the central point in the lean management concept. The primary objectives in the lean management philosophy are to create value for the customer through the optimization of resources and create a steady workflow based on real customer demands (Ohno, 1990). It seeks to eliminate any waste of time, effort or money by identifying each step in a business process and then revising or cutting out steps that do not create value (Bertagnolli, 2018). The philosophy has its roots in Japan and operations, but is presently widely spread across the world and industries. Lean management focuses on: • Putting the customer into the focus of operation • Defining value and value-add from the standpoint of the end customer • Eliminating all waste in all areas of the value chain • Continuously improving all activities, processes, purposes and people • Putting the people into the centre of value-adding services and processes Lean management facilitates shared leadership and responsibility; continuous improvement ensures that every employee contributes to the improvement process. The management method acts as a guide to building a successful and solid organization that is constantly progressing, identifying real problems and resolving them. Lean management is based on the Toyota production system which was established in the late 1940s. Toyota put into practice the five principles of lean management with the goal being to decrease the amount of processes that were not producing value; this became known as the Toyota Way. By implementing the five principles, they found that significant improvements were made in efficiency, productivity, cost efficiency and cycle time. Lean management incorporates five guiding principles that are used by managers within an organization as the guidelines to the lean methodology (Helmold & Samara, 2019). The five principles are: 1. Identify value in all process of the value chain 2. Conduct value stream mapping 3. Create a continuous workflow 4. Establish a pull system in which the customers are the focus 5. Facilitate a continuous improvement culture Identifying value, the first step in lean management, means finding the problem that the customer needs solved and making the product the solution. Specifically, the product must be the part of the solution that the customer will readily pay for. Any process or activity that does not add value, meaning it does not add usefulness and the customer is not willing to pay for it, importance or worth, to the final product is considered waste and should be eliminated (Liker, 2004). Value stream mapping refers to the process of mapping out the company’s workflow, including all actions and people who contribute to the process of creating and delivering the end product to the consumer. Value stream mapping helps managers visualize which processes are led by what teams and identify the people responsible for measuring, evaluating and improving the process. This visualization helps managers determine which parts of the system do not bring value to the workflow (Slack, 1995).

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Creating a continuous workflow means ensuring each team‘s workflow progresses smoothly and preventing any interruptions or bottlenecks that may occur with cross-functional teamwork. Kanban, a lean management technique that utilizes a visual cue to trigger action, is used to enable easy communication between teams so they can address what needs to be done and when it needs to be done by. Breaking the total work process into a collection of smaller parts and visualizing the workflow in this regard facilitates the feasible removal of process interruptions and roadblocks. Developing a pull system ensures that the continuous workflow remains stable and guarantees that the teams deliver work assignments faster and with less effort. A pull system is a specific lean technique that decreases the waste of any production process. It ensures that new work is only started if there is a demand for it, thus providing the advantage of minimizing overhead and optimizing storage costs. The last principle is the continuous improvement and can be regarded as the most important step in the lean management method. Facilitating continuous improvement refers to a variety of techniques that are used to identify what an organization has done, what it needs to do, any possible obstacles that may arise and how all members of the organization can make their work processes better. The lean management system is neither isolated nor unchanging and, therefore, issues may occur within any of the other four steps. Ensuring all employees contribute to the continuous improvement of the workflow protects the organization whenever problems emerge. Management has to create an environment and culture, in which all employees can work in line with the five principles (Bertagnolli, 2018).

12.2 Lean Management Versus the Traditional Concept In contrast to the traditional manufacturing concepts the lean production are based on a reduction of throughput times, low inventories and the permanent elimination of non-value-adding activities throughout the value chain (Ohno, 1990). These (non-value-adding) activities are unnecessary and represent waste or “Muda” (Japanese = 無駄). The Fig. 12.1 shows the major elements of the lean management concept. The traditional concept also focuses on customer satisfaction with high inventories and a hierarchical structure of the organization (Ohno, 1990). Both concepts are directed towards customers. The lean management concept’s foundation is based on the optimal reaction capability and not based on inventories. Inventories increase the cost of capital and have negative impacts on the shareholder value, whereas short cycle times lead to small inventories. Lean manufacturing or lean production, often simply “lean”, is a systematic method for the elimination of waste (“Muda”) within a manufacturing system. Lean also takes into account waste created through overburden (“Muri”) and waste created through unevenness in workloads (“Mura”). Working from the perspective of the client who consumes a product or service, “value” is any action or process that a customer would be willing to pay for. Essentially, lean is centred on making obvious what adds value by reducing everything else. Lean manufacturing is a management philosophy derived mostly

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Traditional Approach Large Inventory

=

High Delivery Capability Customer Orientation

New Work & Lean Management

Short Cycle Times

=

Optimal Reaction Capability Customer Orientation

Fig. 12.1  Lean management versus traditional concept. (Source: Author’s source)

from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as “lean” only in the 1990s. TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. The steady growth of Toyota, from a small company to the world’s largest automaker, has focused attention on how it has achieved this success. The key to acquiring and keeping customers is by offering value. To do this, we must first understand our customers and what they are willing to pay for—this is what we call “value”. By definition, everything else is waste, diminishing value to the customer and reducing profitability. Put simply, Lean Thinking (or Toyota Way トヨタウェイ) is delivering value from the customer’s perspective and eliminating waste (or muda 無駄). Lean is the combination of the five aforementioned complementary, interconnected principles, each geared towards increasing value to the customer by improving efficiency. By applying these simple principles, any business in any sector can not only provide a better service or product to their end users, but also make fundamental, sustainable improvements in profitability. The Toyota Productions system (TPS) has been adopted by many companies in all sectors on a global scale. The TPS has been applied by many OEMs in automotive industry, railway area and other business sectors. Bombardier Transportation is applying the Bombardier Operations System (BOS), Porsche the Porsche Production System (PPS) and Daimler the Daimler Production System. However, it is not always successful, as the activities are only partially introduced and not rolled out in total. Secondly, lean principles are not synchronized with the supply side and may thus not show the desired effects and results. It does not make sense to establish only single lean instruments. It is of the utmost importance and a fundamental aspect of the lean concept that principles are applied in a total approach that involves the suppliers. In this respect, it is the crucial role of procurement and supplier relationship

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Lean Management Ne

wW

ork

Optimal Reaction Capability

Lean and Structures

Agile Processes and short Cycle Times

Flexible and agile Organisation Customer Orientation

Customer Orientation Fig. 12.2  New work and lean management. (Source: Author’s Source)

management to transfer this competency to its supply chain. Inefficiencies throughout the supply chain can thus be identified, waste can be eliminated and processes can be harmonized in order to strive for continuous improvements. Continuous improvement (Japanese: Kaizen) means small steps and is part of the lean philosophy. Data show that the complete transfer of lean principles to the own operation and the supply chain will lead to significant productivity improvements and significant cost reduction advantages of up to 15–50% (Liker, 2004). Figure 12.2 shows the integration of New Work into lean companies. A flexible organization will lead to shorter cycle times throughout the value chain. In addition, agility and empowerment will create an organization, which can respond quickly to customer demands with enabled and engaged employees (Helmold, 2020). Thus, a company has the optimal reaction capability to forecast and react on customer demands (Bertagnolli, 2018).

12.3 Historical Origins of Lean Management 12.3.1 Early Developments of Lean Management Early developments of Lean Management tools reach back into the early times of industrialization. With increased customer demands, entrepreneurs were trying to implement processes that would accelerate and increase the production. Eli Whitney is most famous as the inventor of the cotton gin. However, the gin was a minor accomplishment compared to his perfection of interchangeable parts. Whitney developed this about 1799 when he took a contract from the US Army for the manufacture of 10,000 muskets at the unbelievably low price of $13.40 for each gun. For the next 100 years manufacturers primarily concerned themselves with individual technologies. During this time our system of engineering drawings

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developed, modern machine tools were perfected and large-scale processes such as the Bessemer process for making steel held the centre of attention. As products moved from one discrete process to the next through the logistics system and within factories, few people concerned themselves with: • What happens in-between processes? • How multiple processes were arranged within the factory? • How the chain of processes functioned as a system? • How each worker went about a task?

12.3.2 Ford and Taylorism This changed in the late 1890s with the work of early Industrial Engineers. Frederick W. Taylor began to look at individual workers and work methods. The result was the studies of time management, the time per one cycle and standardized work operations. He called his ideas Scientific Management (Hounshell, 1988). Taylor was a controversial manager and personality. The concept of applying science to management was sound but Taylor simply ignored the behavioural sciences. In addition, he had a peculiar attitude towards factory workers. Frank Gilbreth (Cheaper by The Dozen) added Motion Study and invented Process Charting. Process charts focused attention on all work elements including those non-Value-added elements which normally occur between the “official” elements. Lillian Gilbreth brought psychology into the mix by studying the motivations of workers and how attitudes affected the outcome of a process. There were, of course, many other contributors. These were the people who originated the idea of “eliminating waste”, a key tenet of JIT and Lean Manufacturing. Although there are instances of rigorous process thinking in manufacturing all the way back to the Arsenal in Venice in the 1450s, the first person to truly integrate an entire production process was Henry Ford. At Highland Park, MI, in 1913 he married consistently interchangeable parts with standard work and moving conveyance to create what he called flow production. The public grasped this in the dramatic form of the moving assembly line, but from the standpoint of the manufacturing engineer the breakthroughs actually went much further. Ford lined up fabrication steps in process sequence wherever possible using special-­ purpose machines and go/no-go gauges to fabricate and assemble the components going into the vehicle within a few minutes, and deliver perfectly fitting components directly to line-side. This was a truly revolutionary break from the shop practices of the American System that consisted of general-purpose machines grouped by process, which made parts that eventually found their way into finished products after a good bit of tinkering (fitting) in subassembly and final assembly. The problem with Ford’s system was not the flow: He was able to turn the inventories of the entire company every few days. Rather it was his inability to provide variety. The Model T was not just limited to one colour, which was black. It was also limited to one specification so that all Model T chassis were essentially identical up through the end of production in 1926. (The customer did have a choice of four or five body styles, a drop-on feature from outside suppliers added at the very end of the

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production line.) Indeed, it appears that practically every machine in the Ford Motor Company worked on a single part number, and there were essentially no changeovers. When the world wanted variety, including model cycles shorter than the 19 years for the Model T, Ford seemed to lose his way. Other automakers responded to the need for many models, each with many options, but with production systems whose design and fabrication steps regressed towards process areas with much longer throughput times. Over time they populated their fabrication shops with larger and larger machines that ran faster and faster, apparently lowering costs per process step, but continually increasing throughput times and inventories except in the rare case (like engine machining lines) where all of the process steps could be linked and automated (Hounshell, 1988). Even worse, the time lags between process steps and the complex part routings required ever more sophisticated information management systems culminating in computerized Materials Requirements Planning Systems (MRP).

12.3.3 Toyota Production System (TPS) As Kiichiro Toyoda, Taiichi Ohno, and others at Toyota looked at this situation in the 1930s, and more intensely just after World War II, it occurred to them that a series of simple innovations might make it more possible to provide both continuity in process flow and a wide variety in product offerings. They therefore revisited Ford’s original thinking, and invented the Toyota Production System. This system in essence shifted the focus of the manufacturing engineer from individual machines and their utilization, to the flow of the product through the total process. Toyota concluded that by right-sizing machines for the actual volume needed, introducing self-monitoring machines to ensure quality, lining the machines up in process sequence, pioneering quick setups so each machine could make small volumes of many part numbers, and having each process step notify the previous step of its current needs for materials, it would be possible to obtain low cost, high variety, high quality, and very rapid throughput times to respond to changing customer desires. The concept of the TPS is based on a paradigm of permanent and continuous improvement, the Kaizen philosophy. Figure 12.3 displays the meaning of Kaizen as Change for the Best or Change for Improvement. Also, information management could be made much simpler and more accurate (Liker, 2004). The thought process of lean was thoroughly described in the book The Machine That Changed the World (1990) by Womack, Jones and Ross, the authors Described that lean principles are based on five elements: • Specify the value desired by the customer • Identify the value stream for each product providing that value and challenge all of the wasted steps (generally nine out of ten) currently necessary to provide it • Make the product flow continuously through the remaining value-added steps • Introduce pull between all steps where continuous flow is possible • Manage towards perfection so that the number of steps and the amount of time and information needed to serve the customer continually falls

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Kaizen =

New

Change and Improvements for the best in small Steps

Wo

rk

KAI 改

+

ZEN 善

Fig. 12.3  Lean management and Kaizen. (Source: Author’s source)

12.3.4 Lean Management in Today’s World This continued success has over the past two decades created an enormous demand for greater knowledge about lean thinking. There are literally hundreds of books and papers, not to mention thousands of media articles exploring the subject, and numerous other resources available to this growing audience. As lean thinking continues to spread to every country in the world, leaders are also adapting the tools and principles beyond manufacturing, to logistics and distribution, services, retail, healthcare, construction, maintenance, and even government. Indeed, lean consciousness and methods are only beginning to take root among senior managers and leaders in all sectors today. Value chain networks in the present times are complex and international structures of supply and demand (Helmold & Terry, 2016). Especially, Japanese makers show how suppliers are sustainably integrated into the own value chain and activities (Helmold & Terry, 2016). The Japanese networks are described as “keiretsu networks”, in which suppliers and customers are integrated systems throughout the value chain (Helmold & Samara, 2019). Future lean management concepts and supply chains will be configured in a transparent and optimal way, so that wasteful activities and processes can be eliminated at the earliest point of time (Srai & Gregory, 2008). In the future competitiveness will be decided on who has the most flexible and efficient value network including value streams from raw material suppliers over the own operations to the distribution to the customers (Helmold, 2020; Helmold & Terry, 2016). Figure 12.4 shows the influence of Lean Management on New Work and vice versa.

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12.4  Lean Thinking as Part of the New Work Culture

Influental Factors on New Work

Start of Lean Management and Kaizen in Toyota

1950

Translation of Lean Management into English

1980

Start of Lean Management in Toyota

1991

Lean Management Improvements of more than 40% versus traditional Concepts

1992

Confirmation and Extension to Western Factories of Toyota

1997

2009

2010

2020

Financial Crisis

Global Trade

COVID-19 Crisis

Integration of Supply Side into Lean Management

Lean and digitalized Value and Partner Networks

Application and Usage of Lean Management throughout the World

2000

Sustainaibility Awareness

2015

Emerging Countries

2030

Global Warming

Influental Factors on New Work

4

Fig. 12.4  Time line of lean management and influential factors for new work. (Source: Author’s source)

12.4 Lean Thinking as Part of the New Work Culture One of the biggest parts of this involves the concept of “kata”. These are general societal rules and patterns of behaviours that the Japanese exhibit in their everyday life. Since this is an ingrained part of the Japanese culture, the standard practices of business come very naturally to people in this country. As part of their culture, the Japanese are also known for being perfectionists in everything that they do. They take a great deal of pride in their work, so they take a great deal of care to train their employees to ensure the highest quality of work. Another big part of this concept of lean is listening and patience. Toyota is a company that has been heavily associated with lean. One of the things that makes this company so unique is that rather than just barking orders, they encourage workers to develop their own skills and problem-­ solving abilities. There is also a focus more on the long-term goals of a company rather than the short term. These are all areas that exemplify how crucial patience is to the Japanese culture. In fact, to be considered an expert in any field it takes a great deal of time so patience is necessary. Lean is all about how you organize a business to make it more efficient. The purpose is to maximize value and reduce waste. The Japanese culture is known for valuing cleanliness and order, both in the way their live their everyday life and how they run their businesses. If everything is meticulously organized, you can reduce waste because you know exactly what you have

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Seven Virtues of Bushido 1.Justice 義 gi

Courage 勇 yū

Mercy仁 jin

Respect 禮 rei

Honesty 誠 makoto

Honour 名誉 meiyo

Loyalty 忠義 chūgi

Fig. 12.5  Visualization in Tokyo Metro. (Source: Author’s Source)

and what you need. This applies to office supplies and workflow management. You are able to see who should be working on what to know what needs to get done. It makes the business run more efficiently. Figure 12.5 shows how lean tools of visualization are integrated inside the Japanese society and life. It shows the Tozai line including information on connections, time and also the location. Other lines and connections are marked in different colours. Another is the example of lean management and artificial intelligence is a bakery in Tokyo (Fig.  12.6), where the customer-­selected products are identified through a camera on a special counter. The staff only needs to confirm, so that the price is shown to the customer. The customer can now pay via telephone payment (one scan), via card or via inserting money into a slot. The change is given automatically. The process is very fast, waste like waiting time is eliminated and the staff can use more time to advise and assist customers.

12.5 Creating a Logical and Open Mind Chiiku (知育) means to master intellectual knowledge and develop logical thinking for fundamental survival skills. For businesses to stay profitable, they first need stability based on a concrete understanding of their needs and priorities. Then, by using their uncovered resources, they can begin to innovate. Understanding this fundamental need for the business’s survival is the foundation of future prosperity, and it should also form the foundation for developing leaders within the workplace. Chiiku focuses on this logical understanding of the business in a larger context. This is like envisioning a forest as an entire ecosystem rather than just a collection of trees. For business leaders, chiiku means to calculate the sense of urgency and communicate it at all times.

12.6  Leadership Development and Culture

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Fig. 12.6  Artificial intelligence in a bakery in Tokyo. (Source: Author’s Source)

12.6 Leadership Development and Culture Tokuiku(徳育) kuiku means to develop your rational interpersonal skills as a leader. Rational development (tokuiku) is different from logical development (chiiku). Logical thinking is based on cause and effect, whereas rational thinking is based on quantity and scale. Logical thinking can tell us what we ought to do, but we need to be rational to understand why it benefits each individual. It is necessary for humans to develop themselves by not staying satisfied with the current state and rationally comparing it to other possibilities. Leaders must first develop the courage to take risks and surpass the status quo. This is like ensuring the survival of the forest by understanding the needs of each organism that makes up the ecosystem. While chiiku is focused on the organization’s survival as an entity, tokuiku focuses on ensuring the enrichment and success of the individuals who make up that entity.

12.7 Emotional and Physical Strength Taiiku (体育) Modern education systems understand taiiku as physical education (PE). It is seen as simply a way to make students exercise their bodies through sports. But physical education is about more than just building muscles and developing a sense of competitiveness. Taiiku first focuses on strengthening one’s

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willpower and emotions to force out the right actions. For business leaders, taiiku means learning the skills to inspire a culture of immediate action, not just the words. Leaders must learn to help others break the status quo. This means learning the self-­ criticism mentality (hansei). Figure 12.5 and 12.6 show examples of visualization and artificial intelligence practices in the daily life in Tokyo. When taking the Tokyo metro customers can easily see where to go and where they are by reading the metro map. The Fig. 12.6 shows an example of a bakery in Japan, which applies a scanner to identify products selected by customers. After detection, the product and price is displayed on a monitor, so that the customer can easily pay. Employees can this way concentrate on more consulting work for the customers.

12.8 Influences of Bushido: Seven Virtues Bushido is the definition for the code of ethics and ideals that dictated the samurai way of life in ancient Japan. The moral values of samurai warriors are stressing elements like sincerity, frugality, loyality, martial arts and honour until death. Bushido flourished during the Edo period from 1600 to 1878. Inspired from Neo-­ Confucianism during the Edo period and influenced by Shinto and Buddhism, it allowed the samurai to be tempered by wisdom, patience and serenity. The seven virtues are shown in Fig. 12.7 and are defined as follows: 1. Justice or Rectitude (義 gi) This is all about making sure that we have the right way when we make a decision. That we have the power to make a decision quickly. It is about making sure

Fig. 12.7  Seven virtues of Bushido. (Source: Author’s Source)

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133

that we do not become indecisive and that our decisions are made and based on the right reasons. 2. Courage (勇 yū) This is about making sure that what we do is right and that we have the courage to do the right thing and not just what people think we should do. If we are raised in a particular way, we think in a way that we belief in. this is about making sure we do what we believe in and have the courage to do so. 3. Benevolence or Mercy (仁 jin) As a warrior, the Samurai have the power to kill. However, benevolence is about making sure that you are balanced in how you think. It is about making sure that you also have sympathy and mercy at the right time. For the Samurai it was about making sure you fought for the right reason and that if you had to kill someone, you did it for the right reason and your belief but that you also make sure that if there was no need to kill you would have mercy and be sympathetic. 4. Respect (禮 rei) It is important that in everything they believe, they must have respect and be polite in everything. The way they live their life meant they must be respectful of their elders, they must respect life, respect others beliefs. 5. Honesty (誠 makoto) Honesty was very important, as they believe that being honest in everything you do gives you respect and means you can be trusted. 6. Honour (名誉 meiyo) To live and die with honour was very important to the Samurai. Everything they did was honourable which meant they did everything in what they believed with honour. 7. Loyalty (忠義 chūgi) Loyalty was probably one of the very important parts of what they did. They treated each other like family and would do everything within their power to protect and help their samurai warriors. Loyalty was important because this means they can trust their warriors and know they would be loyal to whatever they needed to do and not worry about losing their respect.

12.9 Case Study: Porsche Consulting Practical examples by Porsche Consulting show that the introduction of the TPS led to radical improvements in terms of errors and defects per car (Quality), serial completion time (Cost and Productivity) and inventory (Logistics and Delivery). The study reveals that the reduction of defects per car was reduced by 63%. The throughput time could be improved by more than 53%. This caused a positive situation of inventory by 50%. In the JIT approach, it is important that the right part comes in the right quantity in the right quality at the right time to the right place as shown in the 7R principle. This principle focuses on a zero defect as shown in the next figure. This principle was defined in the previous chapters as part of the objectives. The

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Fig. 12.8 Lean management and Kaizen. (Source: Author’s Source)

principles can be regarded as obtaining the right parts at the right quality and at the right time. This has to be in line with the right quantity in the right place by the right people at the right price (Helmold & Samara, 2019). Companies such as Porsche have understood, that the low value-adding activities of the own organization lead automatically to increasing activities on the supply side (Kalkowsky, 2004). Porsche was also hampered by antiquated production methods. Some 20% of its parts were delivered three or more days too late, for example. The former head of Porsche, Dr. Wendelin Wiedeking, who had been deeply impressed by what he had seen on visits to Japanese auto firms such as Toyota, Nissan and Honda, believed that only a radical, “lean manufacturing” cure would save the company. He flew in teams of the same Japanese consultants who had helped Toyota and gave them free rein. “A cultural revolution from top to bottom” is the way he describes what happened next, as the consultants organized the workforce into teams and one by one eliminated poor practices. Wiedeking made one now-fabled appearance on the assembly line wielding a circular saw, which he used to cut down the roof-high racks of spare parts that towered over the production line. After the lean cure of the own production facilities, Porsche extended the lean concept to suppliers and established the supplier development department in 2006 (the name of the department is FEL,

References

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Finance-­Purchasing, Supply Management). This department is in charge of extending lean principles to the supply networks and to synchronize production systems. In the following section the concept of lean supply management will be discussed. Lean principles have: • to create a flexible and agile work environment • to empower employees • to have a flat and transparent hierarchy • to apply a learning organization • to integrate suppliers • to be customer oriented • to establish competencies to core functions • to apply lean principles to shop floor (Gemba) • to concentrate only on essential success factors • to reduce waste • to continuously improve • to apply a Pull-system • to apply lean principles throughout the supply chain The Fig.  12.8 shows the Porsche production assembly including a one-piece flow. Porsche is implementing the principles of a Just-in-Time production system.

References Bertagnolli, F. (2018). Lean management. Wiesbaden: Springer. Helmold, M., & Terry, B. (2016). Global sourcing and supply management excellence in China. Procurement guide for supply experts. Singapore: Springer. Helmold, M. (2020). Lean management and Kaizen. Fundamentals from cases and examples in operations and supply chain management. Cham: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Management for professionals. Heidelberg: Springer. Hounshell, D. A. (1988). Organisational Structure. The same old principles in the New Manufacturing. Harvard Business Review. Retrieved 25.11.2019. https://hbr.org/1988/11/ the-same-old-principles-in-the-new-manufacturing. Kalkowsky, M. (2004). Nur Porsche hat das lean management begriffen: Interview with prof. D. Jones. Produktion, 31, 16. Liker, J. K. (2004). The Toyota way. Madison: McGraw-Hill. Ohno, T. (1990). Toyota production system. Beyond large scale production. New York: Productivity Press. Slack, N., et al. (1995). Operations management. London: Pitman Publishing. Srai, J. S., & Gregory, M. F. (2008). A supply network configuration perspective on international supply chain development. International Journal of Operations & Production Management, 28(5), 386–411.

New Work and Corporate Social Responsibility (CSR)

13

It takes 20 years to build a reputation and five minutes to ruin it. Benjamin Franklin

13.1 Definition of CSR The term Corporate Social Responsibility (CSR) was used in 1953 by Howard R. Bowen in his book Social Responsibilities of the Businessman and stands for the social responsibility of companies. Bowen preaches in his book for greater consideration for society by the large corporations in the USA (Corporate America), since these corporations have considerable power and, with their economic endeavors, have a major impact on the lives of ordinary citizens (Bowen5]. In the decades that followed, the concept of Corporate Social Responsibility (CSR) evolved continuously, initially through the zeitgeist of the social movements in the 1960s, for example through the civil rights movement, the consumer movement, the environmental movement and the women’s movements.

13.2 CSR and New Work Corporate social responsibility (CSR) is an essential factor for a competitive advantage and employee satisfaction. Employees want to work for enterprises with social standards and rules (Stibbe, 2019). For successful sustainable development, actors from politics, companies, nonprofit, science and education deal with the topic of sustainable management. Examples show that CSR is not only a matter of multinational companies (MNC) but also other organisations across industries like start-­ ups, corporations in metropolitan areas, small and medium-sized (SME) companies

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_13

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in rural areas—from high-tech to organic farming (Herzner & Schmidtpeter, 2020). CSR is also known by a number of other definition names. These include corporate responsibility, corporate accountability, corporate ethics, corporate citizenship or stewardship, business ethics, responsible entrepreneurship, and triple bottom line, to name just a few (Helmold, 2020). As CSR issues become increasingly integrated into modern business practices, there is a trend towards referring to it as “responsible competitiveness” or “corporate sustainability”. CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision-making, strategy and operations in a transparent and accountable manner, and thereby establish better practices within the firm, create wealth and improve society. A key point to note is that CSR is an evolving concept that currently does not have a universally accepted definition. Generally, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision-making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society. As issues of sustainable development become more important, the question of how the business sector addresses them is also becoming an element of CSR. The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. Building on a base of compliance with legislation and regulations, CSR typically includes “beyond law” commitments and activities pertaining to: • Corporate governance and ethics • Health and safety • Compliance with Laws • Environmental stewardship • Intellectual Property Rights • Human rights (including core labour rights) • Sustainable development • Conditions of work (including safety and health, hours of work, wages) • Industrial relations; community involvement, development and investment • Involvement of and respect for diverse cultures and disadvantaged peoples • Corporate philanthropy and employee volunteering • Customer satisfaction and adherence to principles of fair competition • Antibribery and anticorruption measures • Accountability, transparency and performance reporting • Supplier relations, for both domestic and international supply chains Lean Manufacturing concepts focus primarily on improvements of the operational processes and efficiency. Another goal is to reduce waste and thus to reduce operating costs. In the last years sustainability has become more and more important, so that any organisation must deploy sustainability elements alongside a lean organisation. Sustainability or Corporate Social Responsibility (CSR) has the following elements as shown in Fig. 13.1. The figure shows that there is a strong need to align the lean implementation process with the sustainability strategy in order to avoid the negative impacts that lean production could have on the environmental and social components of sustainability. Although the concept of corporate social

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Labour Conditions Intellectual Property

AntiCorruption

CSR Elements Human Rights

Environment

Social Standards

Compliance with Laws

Fig. 13.1  CSR elements. (Source: Author’s Source)

responsibility (CSR) has been advocated for decades and is commonly employed by corporations globally, agreement on how CSR should be defined and implemented remains a contentious debate among academia, businesses and society (Helmold, 2020). This gap is problematic for corporations because they are increasingly being required to align with societal norms while generating financial returns. In order to remedy this problem, the following definition is presented: corporate social responsibility is a business system that enables the production and distribution of wealth for the betterment of its stakeholders through the implementation and integration of ethical systems and sustainable management practices. Many of the concepts in the proposed definition are commonplace among CSR practitioners and organizations, the validations for the key segments—production and distribution of wealth, stakeholder management, ethical systems, sustainable management practices—coupled with the application of a systems approach and other business practices make the definition unique and conclusive.

13.3 CSR Maturity Levels Maturity is a measurement of the ability of an organization for continuous improvement in CSR as shown in Fig. 13.2. The higher the maturity, the higher will be the chances that incidents or errors will lead to improvements either in the quality or in the use of the resources of the discipline as implemented by the organization.

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Leading

Mature Established

Improving Basic

CSR as essential Element in New Work

Fig. 13.2  CSR maturity levels (Helmold & Samara, 2019)

13.4 Global Compact Principles Corporate sustainability starts with a company’s value system and a principles-­ based approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anticorruption. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success. The UN Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights, labour, the environment and anti-corruption. Under the Global Compact, companies are brought together with UN agencies, labour groups and civil society. The framework provides a universal language for corporate responsibility and a framework to guide all businesses regardless of size, complexity or location. Joining the UN Global Compact means to take an important, public step to transform our world through principled business. Participation makes a statement about values, and it benefits both society and companies’ long-term success (Helmold & Samara, 2019). Corporate sustainability starts with a company’s value system and a principled approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anticorruption. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success (Helmold & Terry, 2016) (Fig. 13.3).

13.5  Case Study: Volkswagen’s Lean and Green Award

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Fig. 13.3  Global compact principles. (Source: United Nations)

13.5 Case Study: Volkswagen’s Lean and Green Award The Volkswagen Wolfsburg plant receives the “Lean & Green Management Award 2019” in the “Automotive OEM” category for its efficient and sustainable production as shown in Fig. 13.4. More than 250 works from more than ten countries and 20 different industries participated in the competition. “We are proud that our persistent work has been successful in saving resources and that we have been awarded the prestigious ‘Lean & Green Management Award’ for this,” said Stefan Loth, Head of Volkswagen’s Wolfsburg plant. “At the Wolfsburg location, we prove that efficient vehicle production while at the same time conserving resources is not only possible, but makes sense. Because the production also carries an ecological responsibility. The deliberate use of raw materials and energy plays a key role in our environmental commitment”. In terms of production efficiency, Volkswagen’s parent plant focuses on its “PQM” strategy—productivity, quality and crew. Every year more than 400 workshops take place, with which the Wolfsburg workforce improves the processes and thus reduces the production costs per vehicle. The plant consistently uses the Volkswagen Production system that describes the basics, standards and methods by which the manufacturing processes are designed, executed and constantly developed. The Volkswagen parent plant is also on course for sustainability and the implementation of the “Zero Impact Factory” environmental program. An important building block for protecting the environment and promoting biodiversity

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Fig. 13.4  Volkswagen Lean and Green Award 2019. (Source: Volkswagen, 2019)

are, for example, the process water basins located on the plant site. Thanks to the internal operating water cycle, every drop of water passes through the site about four to six times, helping to keep water consumption per vehicle very low. The “Lean & Green Management Award” is awarded annually by the consultants Growth Consulting Europe and Quadriga Consult and the trade publication AUTOMOBIL INDUSTRIE. The award was recently ranked as one of the highest rated sustainability awards in Germany in a study by the University of Hohenheim.

References Helmold, M. (2020). Lean management and Kaizen. Fundamentals from cases and examples in operations and supply chain management. New York: Springer. Helmold, M., & Samara, W. (2019). Progress in performance management. Industry insights and case studies on principles, application tools, and practice. Heidelberg: Springer. Helmold, M., & Terry, B. (2016). Global sourcing and supply management excellence in China. Procurement guide for supply experts. Singapore: Springer. Herzner, A., & Schmidtpeter, R. (2020). CSR in Süddeutschland. Unternehmerischer Erfolg und Nachhaltigkeit im Einklang. Wiesbaden: Springer. Stibbe, R. (2019). CSR-Erfolgssteuerung. Den Reformprozess verstehen. Reporting und Risikomanagement effizient gestalten. Wiesbaden: Springer. Volkswagen. (2019). Volkswagen Werk Wolfsburg erhält den Umweltpreis “Lean and Green Management Award”. Retrieved November 20, 2019, from https://lean-­and-­green.de/de/ award-­gewinner

New Work in Education and Teaching

14

People rarely succeed unless they have fun in what they are doing. Dale Carnegie

14.1 Trends in Education and Teaching According to UNESCO, the outbreak of COVID-19 has disrupted the education of 1.5 billion learners across the world, this is 91% of the world’s student population. In the university and college sector, institutions have been forced to close the doors to their campuses. Students studying practical courses have had to put their learning on hold. Those studying theoretical courses have had to shift to learning at home, with teaching moving online (IAU, 2020). This is a level of disruption the likes of which we have never seen before. Many scientists and experts believe that degree of online classes at universities and colleges will increase in the future even more. The questions is, what will the coronavirus pandemic mean for higher education in the coming years? For historical and functional reasons, universities are at odds with social developments. On the one hand, universities have a decisive influence on these developments; on the other hand, they are also shaped by them, but must not simply adapt to them. By generating and imparting knowledge, universities provide the chance that the problem horizons of the societies around them generated by everyday theory are exceeded. They do justice to their role as actors in the dialogue that builds on this, especially when they prospectively take up the foreseeable changes in social framework conditions. At present, modernization processes can already be observed or foreseen, which pose considerable challenges to the ability of societies and states to cope with social change. The challenges result from the fact that societies can only adapt to the upcoming changes through mobilization long unnecessary resources of conflict management, differentiation and innovation

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Virtual Conferences

Online Examinations

Virtual Classrooms

Virtual Networks

Global and Virtual University

Long Distance Learning

Blended Learning

New Work Teaching Sector

Collaboration across Universities

Fig. 14.1  Trends in teaching and education. (Source: Author’s Source)

processing will succeed. The dimensions of these modernization processes are knowledge society, globalization, Europeanization, regionalization and demographic developments. The mobilization of appropriate coping resources requires democratization processes, changes in state tasks and developments in labour markets and work requirements. Figure 14.1 shows trends in the educational and teaching area. A trend towards greater privatization or partial privatization of education at all educational levels is an expression of education and training that is more focused on application and practical relevance, as well as the simultaneous limitation of state funding in Europe. Companies set up their own educational institutions or cooperate specifically with state educational institutions. Private schools of all levels are gaining popularity compared to state schools. Private financing shares are increasing. Financial stress is an issue in all systems of tertiary education. The answers to this are, on the one hand, the search for efficiency reserves, and on the other hand, the shifting of costs to the demand for education. A distinction must be made between financing the educational processes themselves and financing. At universities e.g. the educational process is 85% publicly funded and 15% privately; In the case of livelihood it is the other way round: 78% are financed privately and only 22% by the state.

14.1.1 Virtual Classrooms A virtual classroom is a learning environment in which students (customers, partners, or any third-party) engage with the lesson material online. Information is often conveyed through voice or video conferencing with several participants and instructors connected to the same chat interface. The virtual classroom allows for live

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interaction between the tutor and the learners as they are participating in learning activities. In other words, the virtual classroom is a shared online space where the learners and the tutor work together simultaneously. Usually, these interactions take place through videoconferencing. The participants have tools to present learning content in different formats, as well as to implement collaborative and individual activities. In this type of interaction, the teacher has the particularly important role of the moderator who guides the learning process and supports group activities and discussions. The most common tools you can find in a virtual classroom are: • Videoconferencing • Online Whiteboard for real-time Collaboration • Instant Messaging Tool • Participation Controls • Breakout Rooms Synchronous virtual classrooms have the potential to provide significant added value to online learning by addressing the needs of the learners as they relate to social interaction and psychological safety. They can also create a new standard in the learning experience that goes above and beyond the physical space of the classroom and traditional teaching methods. The virtual classroom provides an abundance of opportunities, especially when combined with self-study platforms (learning management systems) or when used in addition to traditional classroom learning activities. Unlike asynchronous learning environments, the synchronous virtual classroom allows for instant feedback, direct teacher-student interaction, and engaging activities to increase motivation and active participation. Immediate communication favours relationship building within the group, as well as a sense of community. Although teaching and learning in a virtual classroom provide an experience similar to the physical one, it requires new pedagogical approaches and a redesign of the instructional model that includes the following characteristics: • Virtual Classroom’s high Interactivity • Collaborative Learning • Student-Centred Instruction • Variety of Content Presentation and Learning Activities • Psychologically Safe Environment • Positive and Constructive Feedback Figure 14.2 shows the workplace of a virtual classroom with simple tools and the audimax classroom at the IUBH in Berlin. During the COVID-19 crisis, the IUBH changed to 100% virtual teaching.

14.1.2 Blended Learning Blended learning or integrated learning describes a form of learning that strives for a didactically meaningful combination of traditional face-to-face events and modern forms of e-learning. The concept combines the effectiveness and flexibility of electronic forms of learning with the social aspects of face-to-face communication

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Professors and Academic Staff

Examination

Administration

New Work Opportunities

Students and Scholars

Practitioners and Industry

Fig. 14.2  Virtual teaching and education at IUBH. (Source: Author’s Source)

and, if necessary, the practical learning of activities. This form of learning combines different learning methods, media and learning-theoretical orientations. As a learning organization, blended learning aims to strengthen the advantages and minimize the disadvantages through the appropriate combination of different media and methods. It is particularly important that the attendance phases and online phases are functionally coordinated. Through the unprejudiced use of the optimal medium in the respective step of the learning process, blended learning represents a decidedly universal form of learning organization.

14.1.3 Diverse and International Student Population As institutions are becoming more focused on welcoming diverse student populations, administrators are faced with understanding how they can meet the needs of all students, no matter their background. Diversity is important on college and university campuses; having a wide array of perspectives and backgrounds brings forth new ideas and teaches students to value the opinions of one another. However, with all of these different backgrounds at play, administrators are faced with the challenge of ensuring that all cultures are respected and the needs of all students are met. As leaders in higher education, administrators must also pay attention to the needs of their online students in order to ensure that they can achieve educational success, especially with distance and digital factors involved.

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14.1.4 Online Examinations Online examination is conducting a test online to measure the knowledge of the participants on a given topic. In the olden days, everybody had to gather in a classroom at the same time to take an exam. With online examination students can do the exam online, in their own time, with their own device, regardless of where they live.

14.1.5 Artificial Intelligence Replacing Human Factor Artificial intelligence (AI) is already being used in blended and personalized learning, but experts expect its use to grow significantly in the coming years. It seems schools will be at the centre of this technological “revolution”. Education leader Sir Anthony Sheldon claims that intelligent machines will replace teachers by 2027. Of all the current teaching trends, this one makes us the most horrified. Teaching is perhaps the most human of endeavours.

14.1.6 Student Financing Well over half of students who graduate from 4-year colleges and universities finance their education through student loans. According to The College Board, the average student loan debt is around $30,000 for a bachelor’s degree from 2012 to 2013. In total, well over a trillion dollars is owed in student debt. That is second to what is owned on all American home mortgages. Additionally, students who either graduated or left college before completing their degrees are defaulting on their student loans; it is estimated that over 14% of student debt is currently in default. While policymakers are looking for ways to make student loans easier to repay, colleges and universities are searching for ways to make earning an education more affordable. This has pushed colleges and business schools to think creatively about the types of programs they offer, how students earn credit, and the way education is delivered.

14.1.7 Diversification of Revenues and Stabilization of Budgets Under continued financial pressure, regional universities must identify innovative ways to gain more control of their budgets. Traditional efforts to reduce costs tend to be the default way to meet budget, but universities should also assess their assets and capabilities to identify new, diverse ways to generate revenue. To achieve these goals, universities will have to rethink their entire strategic, operating, organizational and financial models. This article focuses specifically on rethinking financial models. Revenue diversification is a critical component of overall revenue mix, and it requires a holistic approach based on five key revenue diversification levers: continued education, research and innovation, services, asset utilization, and partners.

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14.1.8 Personalization of Alumni Communication In an increasingly competitive higher education sector, universities face significant challenges when it comes to recruiting new students. Recruitment is only the beginning of a long-term relationship that universities and business schools need to cultivate, not only while students attend the programs but also beyond graduation as part of the alumni system. How universities manage the relationship with the students and how students perceive their institution’s brand can have an impact on the attachment with the institution and in turn on students’ intentions to engage with the university in the future. Future relationships with graduates will be more personalized.

14.1.9 Brand Awareness Strategies to Increase International Reputation Brand awareness, or the public perception of your higher education institution, directly affects application and enrolment numbers. Ensuring that your institution’s brand is well-known and widely recognized is vital to a healthy student advertising plan. Institutions must make a conscious effort to build brand awareness in order to reach potential students, build a widespread reputation, and attract more recruits. This can be done via internal or external resources and agencies.

14.2 Tools for Online Teaching and Collaboration During the Covid-19 pandemic, many international business schools moved to 100% online teaching and used video conferencing tools and devices. Video conferencing is an engaging, highly interactive way to meet face-to-face with students, colleagues, partners and customers without the need to travel or to meet in a classroom. Participants can join these online meetings using a variety of devices with built-in cameras, including desktop, mobile and video systems. Solutions like Zoom, Webex or Skype also offer sophisticated video conferencing features like screen sharing, meeting recording and transcription, AI-powered meeting assistance, and more. There are many online tools and software solutions, in this chapter the most important are briefly explained. Most of the used online tools have the following important features for virtual teaching: • Instructors—Schedule & Invite: Schedule a Virtual Classroom meeting and invite others (even external participants like a guest speaker) • Recording: Record sessions, then archive or submit as assignment videos • Desktop Share: Share an application or additional resource through your desktop • Upload Presentations: Upload a presentation or present with the whiteboard • Annotation Tools: Show & annotate content during live sessions

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• Change Presenters: Allow multiple people to share and present during the same session • Breakout Rooms: Divide participants into small groups for discussion • Polling: Assess participants’ comprehension and keep them engaged • Live Chat: Facilitate conversation & questions through text • Share Files: Post files for the group or individual participants • Attendance Log: View a list of participants who attended your Virtual Classroom meeting

14.2.1 Zoom Zoom is a video conferencing and messaging solution. It tends to be better for classes of 25 or less so one can interact and see the students, but can also be used for larger lectures. The free “basic” service of Zoom has a 40-min limit on group meetings with three or more participants. 1-to-1 meetings have no limit. Breakout session enables lecturers to do group work and activities. At its peak, the ZOOM company counted more than 300  million daily participants in virtual meetings, while saying customers have more than tripled. The dramatic uptake has the potential to change the firm’s path. Zoom said it expects sales as high as 1.8 billion US$ this year—roughly double what it forecast in March.

14.2.2 Cisco WebEx Cisco WebEx is a cloud-based suite of productivity tools that keeps teams connected. Including WebEx Teams, WebEx Meetings, and WebEx Devices, this suite merges the web conferencing platform and the Spark team collaboration tool from Cisco.

14.2.3 Open Broadcaster Software OBS is free and open-source software for video recording and live streaming. Versions of OBS are available for Linux, macOS, and Windows. It can be used to pre-record lectures for offline consumption. Multiple audio and video sources can be mixed, including desktop capture. Live streaming requires a back end.

14.2.4 Microsoft Teams Microsoft Teams can be used for online collaboration using chat, audio, video, and screen sharing. It supports 1-to-1 as well as group collaboration. See IST’s instructions for using teams. Microsoft says that Google Chrome is fully supported on all

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platforms including Linux, however for Linux we recommend downloading the Teams desktop application because we have seen issues with the browser version. In addition to chat, audio, video, and screen sharing, MS Teams provides a shared (multi-party write) whiteboard during online meetings. The shared whiteboard is also available as standalone service. An overview of various content sharing options in Teams meetings is given here.

14.2.5 Skype Skype has been around since 2003, and it’s still among the most popular video chat tools that are available today. Chances are pretty good that one has had already used it to talk to family members or friends from around the world at some point. It’s a good Zoom alternative for live class instructors who have a smaller group of students. While Skype allows for up to 50 people in a single call, it also limits you to only 250 people on your contact list at a time. As long as all of your students also download Skype, it’s completely free to connect with them to teach live online classes through the platform. Skype is a suitable choice if you’re on a budget and just need a basic video presentation or lecture. The platform offers HD video and crystal-clear audio, as long as everyone in the call has a decent internet connection.

14.2.6 Bongo Bongo facilitates online classes and video recording for examinations. Virtual Classroom facilitates real-time conversations between multiple parties through video. Our web conferencing tool not only integrates seamlessly into any platform, it’s also directly accessible to all users within Video Assignments.

14.3 New Work Opportunities in Teaching and Education Location-independent work has become more important in the wake of recent events. The employee remains the decisive factor. Digital solutions and modern communication tools help to simplify work processes and relieve employees of routine tasks. New Work concepts suppirt schools, business schools and universities with a holistic, strategic approach in using resources efficiently and keeping an eye on the needs of your employees. Figure 14.3 is showing how many opportunities New work offers for the education and teaching sectors. Professors and academic staff can teach virtually from home or any place in the world. Adiminstrative staff can utilize New Work to facilitate support processes. Students have through New Work the chance to join classes on a global level at any time.

14.3  New Work Opportunities in Teaching and Education

151

Teaching Industry

New Work ◾ ◾ ◾ ◾ ◾

Virtual and Hybrid Class Rooms Work and Desk Concept Analysis Ergonomics and Work Station Layout Qualification and Training Knowledge Transfer Management Social Zones and Quite Rooms

◾ ◾ ◾ ◾ ◾

Long Distance Learning Tool Manufacturing Assembly- and Capability Studies Ergonomic Studies SW-Parameter Set up for Machines Planning of Robots and Production Lines

◾ ◾ ◾ ◾ ◾

Virtual Learning Groups Assembly Planning and Execution Ramp up and Capacity Studies Shift and Resource Planning Quality Management Surveys Phase Out and End of Life Analysis

◾ ◾ ◾ ◾ ◾

Virtual University Global Presence and Locations Virtual and agile Organisation Collaboration with Universities Collaboration with Industry Collaboration with Government

Fig. 14.3  New work opportunities for stakeholders in education sector. (Source: Author’s Source)

With Campus Studies, the IUBH offers you 100% English-language course content in small study groups, which should optimally prepare students for your future career in an international environment. The individual lectures and seminars take place either at selected locations on campus or online in the virtual classroom. A combination of virtual studies and face-to-face events is also possible in order to exchange ideas with international students, gain intercultural experience and take part in a variety of partner programs abroad. Examinations can also be executed in a virtual way. This can be done via face-to-face examinations, speech recording or online written examinations. Finally, the New Work opportunities offer also practitioners to join virtual classes, either as experts or as scholars. The survey in Fig. 14.4 of the IUBH on online teaching shows that schools are still facing difficulties in online teaching (IUBH, 2020b). Germany’s largest private university for online studies asks teachers about the most important challenges. A big obstacle for virtual classrooms in schools is the infrastructure of IT (30.4%) Every student must have access to digital forms of learning. That is the most important conclusion of the current IUBH survey, in which around 800 teachers took part.

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IUBH Survey on Online Teaching in % Coordination with Colleagues

IT Infrastructure Teacher

Class Dynamics

Learning Objectives Achievement

IT Infrastructure Scholars and Students 0

5

10

15

20

25

30

35

Fig. 14.4  Survey about online teaching

In order to get schools up and running quickly for digital learning, the IUBH wanted to know where the teachers surveyed see the greatest challenges in online teaching. The topic of achieving learning goals primarily affects the motivation of the students as second biggest concern (29.1%). Communication with schoolchildren— similar to students—is different on the screen than in the classroom. Ten years of experience from online courses shows that teaching methods and didactics have to be adapted. For teachers, too, this means first acquiring the technical and didactic knowledge. There were mixed results with the answers to the question about the tools that are currently used most frequently by teachers for online teaching. The respondents work with very different learning and communication platforms such as Zoom, Microsoft Teams or Kahoot, which also provide teachers and students with exciting tools for digital teaching. Tools like e-mail or WhatsApp are definitely an addition. Of course, these two channels are not sufficient for motivating virtual teaching. The survey outlined that a notebook is more convenient, but a smartphone is sufficient in many cases when teachers switch between online and offline sensibly. Assignments can be sent online via mobile phone, which are then processed on paper, photographed and submitted for examination. Figure 14.5 shows the chances and areas for New Work. Virtual classrooms offers a large population of students on a world-wide scale. Virtual classrooms leverage the best of technology to make learning an easier and more convenient experience. They also help bring down the costs significantly, while at the same time, provide a vastly superior reach both in terms of students and lecturrer that can

14.3  New Work Opportunities in Teaching and Education

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Fig. 14.5  New work opportunities in teaching and education. (Source: Author’s Source)

access it. It’s important for students in virtual classes to engage with the material and interact with the lecturer, their classmates, and the subject matter. Like in the traditional classroom, the role as an instructor is what makes virtual courses impactful and special. Key skills such as presentation skills or public speaking can easily be practiced through virtual classrooms, because it offers a safe space for students to experiment without the fear of judgement or getting it wrong—thereby helping them translate those skills confidently in the real world. On the other hand, virtual classrooms have disadvantages like having no control over the students or classroom and no control over the learning atmosphere or environment. Virtual Classroom requires computers and internet access, which might not be at hand to everyone. Field trips to show real examples of industry and enterprises are not possible. Many students want to have real classes and dislike the lack of social interaction, which is

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Fig. 14.6  Alex Young, Director at EY and Prof. Marc Helmold at the Shenzen Technical University (STZU) in China. (Source: Author’s Source)

associated with virtual classes and teaching. Among the many benefits of online education, virtual learning allows lecturers to have a more flexible schedule. It will reduce the cost, and can allow you to more easily develop the career alongside furthering education.

14.3.1 Case Study: Virtual and Physical Classes in IUBH As Germany’s largest state-recognized and accredited private university, the IUBH International University is very familiar with virtual forms of study and innovative study models. For maximum freedom and flexibility, students can also study 100% online if they wish. In the university’s virtual classrooms, students can follow lectures preferably via zoom video conference in a live stream, take part in interactive seminars and take oral exams completely digitally. In group work, one can ask the lecturers questions directly and exchange ideas with other students via Microsoft Teams. Even the complete learning material and the tasks for the respective online course are made available to them online (IUBH, 2020a) (Fig. 14.6).

References

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References IAU. (2020). International Association of Universities. IUBH. (2020a). Virtual campus. Retrieved September 2, 2020, from https://www.iubh.de/campus/ virtueller-­campus/ IUBH. (2020b). Das sind die größten Hürden für digitalen Unterricht. Deutschlands größte Privathochschule für Online-Studium befragt Lehrer zu wichtigsten Herausforderungen. Retrieved September 6, 2020, from https://www.iubh-­university.de/news/ das-­sind-­die-­groessten-­huerden-­fuer-­digitalen-­unterricht/

New Work in the Automotive Industry

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The man who moves a mountain begins by carrying away small stones. Confucius

15.1 The Automotive Industry as Driver for New Work The automotive industry is one of the most important industries in the Europe Union. This industry sector provides direct and indirect jobs to 13.8  million Europeans, representing 15.1% of total EU employment. 2.6 million people work in direct manufacturing of motor vehicles, representing 8.5% of EU employment in manufacturing. The EU is among the world’s biggest producers of motor vehicles and the sector represents the largest private investor in research and development (R&D). To strengthen the competitiveness of the EU automotive industry and preserve its global technological leadership, the European Commission supports global technological harmonization and provides funding for research and development (R&D). The automotive industry has an important multiplier effect in the economy. It is important for upstream industries such as steel, chemicals, and textiles, as well as downstream industries such as Information and Communications Technology (ICT), repair, and mobility services. Around 13.8 million people work in the EU automotive sector. Manufacturing (direct and indirect) accounts for 3.5 million jobs, sales and maintenance for 4.5 million, and transport for 5.1 million. The turnover generated by the automotive industry represents over 7% of EU GDP. 80% of the growth in the sector is expected to occur outside the EU. The EU’s efforts should focus on concluding and enforcing preferential trade and investment agreements. These will make it easier for European companies to access third markets and continue benefiting from economies of scale (European Commission, 2020). The

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Fig. 15.1  Automotive industry in Europe. (Source: Statista, 2020, Automotive Sales)

Volkswagen group is the largest maker, followed by the PSA and Renault groups (Fig. 15.1).

15.2 Paradigm Shift and Transformation in the Automotive Industry Our working world and society are faced with new tasks that can no longer be mastered with “old” work structures. The call for more freedom and creative and individual working methods is being voiced by both employees and employers. With the “New Work” concept, Frithjof Bergmann laid a foundation on which the company is now actively building (Bergmann, 2019). The basic idea of New Work arose from a wave of automation in the automotive industry in Flint, Michigan in the USA. The philosopher and subsequent founder of the “New Work movement” Frithjof Bergmann worked there in a factory and in 1984 installed a “Center of New Work” to give those factory workers the opportunity to find out what they “really”, really want. “With automation, their activities on the assembly line were no longer needed, so an alternative had to be created”. This gave rise to a concept that has become a little independent today. Bergmann himself defines the goal as follows (Bergmann, 2019). The new was seen as the opposite of the capitalist work model. Instead of being laid off because machines were taking

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over their own work, the time freed up was spent finding their own calling, with the support of the company. The focus of New Work is on people and their development. It is the fight against work, “which you endure like a ‘mild illness’” and thus something more than what is hidden behind Work 4.0 (Helmold, 2020). New Work should not only make existing work more attractive, which Bergmann also likes to refer to as “cosmetic corrections to the wage labour system”. Rather, it is about “work that excites you, that captivates you that puts you in a blissful tumult”. The automotive industry in Germany and Europe is under pressure and undergoing a paradigm shift. With new business models from Silicon Valley and China and stricter environmental standards. The automotive industry is threatened with decline. With drastic consequences for employment. To prevent this, we need a reform of transport and infrastructure policy. The federal government must create a future pact for mobility in order to transform the automotive industry. The pressure to change comes primarily from the four megatrends: digitization, urbanization, sustainability and individualization. In addition, there are technical innovations that are rapidly revolutionizing the automotive industry: sooner or later the electric motor will replace the internal combustion engine. If the German automakers are not careful, Silicon Valley and China will overtake them unassailable. It is important to completely rethink: The business model of the future no longer focuses on the car alone, but on mobility as a whole. The mobility transition will be so far-reaching that new regulation of the automotive industry and internal company transformation will not be enough. Rather, politics, companies, trade unions and consumers must tackle a new policy together. This is the only way to achieve a fundamental transformation of the automotive industry. It is important to include all those affected. Large car manufacturers such as suppliers, federal and state governments as well as municipalities. In order to secure locations and employment, a joint future pact for mobility is needed. The time is right, because the industry currently has the necessary resources for such a profound transformation. Our study shows: there is no time to hesitate. Otherwise the successful model of the German automotive industry could soon be history.

15.3 Transition to Automotive 4.0 The automotive industry is in a historically unique situation of upheaval. The business of the German model industry is currently going well. At the same time, however, with digitization, autonomous driving and electric mobility, changes are imminent that are radically revolutionizing the market. How are car manufacturers and suppliers in Germany repositioning themselves for this? Does the future lie in the creation of a dominant digital platform, comparable to Apple in the area of​​ smartphones? Or rather in the role of a hardware provider à la Foxconn? The questions are all the more exciting as there is currently a great deal of uncertainty about many factors. The answer from the experts at Deloitte: scenario-based strategy building helps the industry with positioning. Deloitte has developed a model for this

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that makes it possible to represent different options for action. An insight into the dramatic challenges for the industry—and into concrete solutions.

15.4 Challenges: Drive Technology and Digitization For a long time, the success of the automotive industry in Germany has been based on expertise in the field of combustion engines. German engineering is admired and valued worldwide. However, this technological leadership could become obsolete in the future because electric mobility is coming—and it is fundamentally changing the rules of the game in the industry. Regulatory requirements from politics and ecological reasons have brought the combustion engine into criticism. Even if electromobility is not yet profitable today—battery technology is getting better and cheaper and the market share is growing. Research and investments in the field of electric drives—and in other alternatives such as the fuel cell—are therefore inevitable for OEMs. Battery technology, for example, requires you to make strategic decisions about your own development or acquisitions. For suppliers, the situation is almost even more acute. Since electric drives are mechanically different and, above all, more simply constructed, established components of the internal combustion engine such as gearboxes are largely superfluous. The task for manufacturers and suppliers is now to skilfully shape the transformation to new products and business areas. For companies and shareholders, there may well be a long dry spell before electrically powered vehicles really become a profitable business around 2020/21.

15.4.1 Digitization and Autonomous Driving Enable New Business Models It is all the more important to establish new business models through digitization, intelligent assistance systems and a data-based “ecosystem” for services. Even if it is not yet ready for the market today, autonomous driving is at the fore here. Hardly any other technology will revolutionize mobility in such a way. And research is progressing at a great pace despite isolated setbacks. Together with the sharing economy and trends such as urbanization and change in consumption, this “future technology” is also changing the relationship between consumers and car ownership. Having one’s own car tends to become less important. In electromobility, the performance data, driving dynamics and comfort of automobiles are increasingly converging. This reduces the possibilities for manufacturers to differentiate their own vehicle on the market. The customers of tomorrow may no longer focus primarily on performance features or the image of engineering when buying or booking, but more on the attractiveness of a brand’s mobility platform. Manufacturers should therefore invest in their development and research today. Fleet management and car sharing are becoming increasingly important. This already shows the spread

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of services around the world such as car2go (Daimler) and DriveNow (BMW), which are currently planning their merger, or Uber. In connection with autonomous driving, this field will only show its true disruptive potential. The self-driving connected car also offers interfaces for communication with customers, for after-sales and innovative business areas such as embedded software, infotainment, in-car payment, data-based services and data processing. The car has to be rethought—it becomes a “device on wheels”, analogous to other technical devices such as smartphones. Strategically successful companies are showing how an established technology—in this case the mobile phone—can function as a springboard for a whole range of “new” digital services, from music streaming to payment services, thanks to digitization. The only question for the automotive OEMs in Germany is whether they really want to and can compete with the concepts of the large digital corporations in all fields. Such essential strategy aspects can be clarified using the Deloitte Automotive Value Chain Model. Deloitte’s scenario approach suggests a path through the thicket of current uncertainty and helps companies with strategic orientation. Choosing the right scenario is crucial, but of course it has to be based on the individual circumstances of the car manufacturer or supplier. Depending on the chosen scenario, different priorities then result. In this way, initial “no-regret moves” can be identified, such as investments in Industry 4.0, electromobility and autonomous driving, which are always necessary to secure the future. But the change in the workforce must also be shaped: While most scenarios foresee a decline in jobs in production, a digital workforce should also be set up for the demanding work on the transformation. In addition, signs of the tendency for further developments in politics and society must be continuously monitored, for example in the area of regulation, ​​ in order to adapt the strategy in an agile manner. In any case, the key is to develop and consistently implement a clear strategic vision—the faster the better. In this way, manufacturers and suppliers avoid the fate of “fallen giants” like Nokia in the smartphone sector and proactively shape their future. With the detailed model of the Automotive Value Chain and its extensive expertise, Deloitte supports companies in the optimal strategic positioning for Automotive 4.0.

15.5 Future of the Automotive Industry Despite concerns about a global economic slowdown, shifting consumer preferences and redefining transportation, the automotive industry has to look to talents and New Work concepts to have a successful transformation (Helmold, 2020). In the transformation of industries around the world, perhaps no sector is undergoing a more rapid change than the automotive industry. From the proliferation of electric vehicles to the rise of self-driving cars to increasingly stringent emissions standards, a number of trends are forcing automakers to not only redefine their business but also entirely rethink the concept of transportation. For employers and workers in this business, to thrive in today’s dynamic digital economy requires new skill sets and ways of working even as the global market appears headed for a slowdown.

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According to the New  York Times, car manufacturers around the world employ about eight million workers directly, with millions more indirectly working for component manufacturers (Ewing, 2020). With global sales in 2018 declining for the first time since 2009, the sector is struggling this year as producers such as those in Germany are reporting significant declines in domestic and overseas sales. Similarly, CNN reports that 330,000 automotive-related jobs have been lost in India due to its slumping market, with further cuts that could total one million. Despite the threat of a global recession, car makers are pressed to move ahead with transforming their business. With each new model, the industry is rolling out innovation aimed at delighting consumers and business customers. From reimagining the connected vehicle as an entertainment and shopping hub to developing a vast fleet of self-driving cars, the priorities of manufacturers are being driven by technology and shifting consumer demands. At the same time, changes in how customers use their cars, as assets in the sharing economy, for instance, means auto makers are considering how best to support these activities. The question is what the automotive sector is doing to successfully change? Changes are not only visible in B2B and B2C models, but also in the adoption of virtual elements across all functions and departments (Schmidt, 2019). Already an early adopter of automation and robotics, the industry is now aggressively investing in AI and other technologies to become more efficient and forward-thinking. According to Accenture, the technology change in this the sector is redesigning jobs so workers can deliver more value-added roles such as quality control rather than routine work such as assembly. Manufacturers are also leveraging augmented reality and image correlation algorithms to address quality issues. In the post-digital era, traditional automotive industry players will benefit from a new technology framework that can guide and accelerate their forward momentum. This framework comprises three core elements: 1. New Technologies: Leaders need to continually integrate new technologies into the business. AI, Extended Reality solutions, 3D Printing and Distributed Ledgers are just some of the new technologies being used to reinvent business value chains and customer experiences. In many cases, the efficiencies or new revenue streams enabled by these technologies deliver a quick return on investment, which can fund further growth. 2. A new technology strategy and operating model geared for innovation. In the post-digital world, a company’s technology strategy and business strategy must be woven together to shape a vision for the future. Driven by the CEO, this combined strategy must permeate the organization. An environment of experimentation, a culture of collaboration, agile methods, lean operations, new enterprise architectures and design thinking all play a role. So does a new focus on ecosystems and new roles and skills of a human+ workforce. 3. A future-ready technology foundation. Automotive manufacturers and suppliers will need to continually embrace emerging technologies and decouple core architectures to unlock new value. Winning players will understand the data at their disposal, as well as the potential uses of that data, to open new opportunities. A new approach to cyber-security will also be a critical component of a

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future-ready technology foundation. In the post-digital world, in which ecosystem partnerships and data-sharing become more common, the risks of hacking rise exponentially. Securing ecosystems must become a priority. In the back-office, AI is already helping to accelerate the recruitment effort. Intelligent software that source, screen and engage job seekers help automotive employers to find talent more quickly and efficiently. This is an important consideration because the industry is now competing for many of the same high-value skills sought after by Silicon Valley, and it can’t fall behind in the competition for engineers, programmers and developers—all of whom are critical to developing new features and innovations demanded by car buyers. Moreover, AI will be integral to enhancing the quality and output of work delivered by humans. AI-enabled decision-­ making based on data will help humans to focus on creating value rather than fulfilll tactical tasks. AI is already an important tool for managing the supply chain, which in the automotive industry is an outsized lifeline. However, AI is just one area of reskilling. As the industry has become automated and focus on quality, today’s line workers are also expected to have more skills to use robotics, data-driven systems and RPA (Robotic Process Automation). At the same time, digitalization is also transforming nearly every aspect of the business, from customer-facing activities undertaken by sales and marketing to back-office functions including HR, F&A, procurement, legal and others. This means to continue to drive efficiency in an industry that brought forth the lean concept, the sector must reskill many of its workers to be high performers in a digital and highly connected business environment. Accelerating the capabilities of its workforce should be a priority for the entire auto industry, and not just those seeking to create electric or self-driving cars. This is an especially important task as global demand softens and uncertainty settles over the industry. Only through innovation and workforce agility will automakers survive and thrive in today’s dynamic market changes.

15.6 New Work in the Automotive Industry 15.6.1 New Work and Virtual Technology as Innovation Driver The automotive industry has been the innovation driver in the past year for new paradigms and concepts. Autonomous driving, e-cars, digital services and mobility platforms: High product quality and brand reputation still matter but the climate change and other incidents like the Diesel scandal have changed the environment of this sector, while attributes like technological innovation and transparent cost of ownership rapidly move to the top of what customers want from a car. To maintain a competitive and top leadership position in the automotive market and survive for the long term, companies will have to virtually reinvent themselves (Gnam, Kalmbach, & Bürgin, 2018). The next generation of leaders have started to embrace some common principles as they reinvent themselves in the face of cost pressures (Helmold, 2020). New Work concepts will be one driver for this successful change. Another important element for a successful transformation will be the

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Automotive Industry

New Work

Virtual Workplace Management ◾ Work and Desk Concept Analysis ◾ Ergonomics and Work Station Layout ◾ Qualification and Training ◾ Knowledge Transfer Management ◾ Social Zones and Quite Rooms

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Virtual Production Planning Tool Manufacturing Assembly- and Capability Studies Ergonomic Studies SW-Parameter Set up for Machines Planning of Robots and Production Lines

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Virtual Production Management Assembly Planning and Execution Ramp up and Capacity Studies Shift and Resource Planning Quality Management Surveys Phase Out and End of Life Analysis

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Virtual Product Development Prototyping and Sample Planning Cinematics Studies Digital Mock Up Studies Collision Checks and Data Failure Mode and Effects Analysis (FMEA)

Fig. 15.2  New work in the automotive industry

implementation of social standards for stakeholders and employees (Helmold, Dathe, Dathe, Groß, & Hummel, 2020). New Work can be implemented in various areas like Work Office Layout, Production Planning, Production Management and Execution and Product Development as shown in Fig. 15.2.

15.6.2 Virtual Workplace and Work Station Management Reskilling and revolutionizing the workforce in the automotive industry are essential in an age where man and machine are on the same team. New Work areas can be identified in the areas of workplace and work station management. Employees of automobile companies work with specialized and virtual equipment, tools and materials in order to simulate work operations and processes in production or other functional areas like procurement, warehousing or sales. This concept is suitable for tasks and specific technical skills, which cannot be obtained through theoretical

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classroom learning. Therefore, automobile companies have to train all new employees. It is necessary for automakers to provide constant training for their qualified employees as well. Technology is always evolving, and it is crucial to keep knowledge and skills up-to-date. Virtual reality training is well suited for complex skills development and working out different scenarios. Therefore, many car manufacturers, including Volkswagen, Audi, and BMW use virtual reality in their training programs. Another possibility is the ergonomic evaluation of work places. Ergonomic assessment is a physical therapist’s or other specialist’s evaluation of a workplace and its furnishings, tools, and tasks in relation to the physical abilities of the worker. It is also known as work activities evaluation and treatment. There are five aspects of ergonomics: safety, comfort, ease of use, productivity or performance, and aesthetics.

15.6.3 Virtual Production Planning (VPP) Virtual technologies in combination with New Work now allow to plan virtual plants, simulate their functions and eliminate errors before they are implemented. This creates a virtual image of the plant, the planning process and activity within the production planning process. Virtual reality provides the possibility to create 3D tools and to carry out feasibility and capability studies.

15.6.4 Virtual Production Management (VPM) Virtual Production Management is the use of computers and virtual reality to model, simulate and optimize the critical operations and entities in a factory plant. Virtual manufacturing started as a way to design and test machine tools but has since expanded to encompass production processes and the products themselves. The main technologies used in VM include computer-aided design (CAD), 3D modelling and simulation software, product lifecycle management (PLM), virtual reality, high-speed networking and rapid prototyping. Virtual Production Manufacturing provides an organization with the ability to analyse the manufacturability of a part or product as well as evaluate and validate production processes and machinery and train managers, operators and technicians on production systems.

15.6.5 Virtual Product Development (VPD) Virtual Product Development is the practice of developing and prototyping products in a fully digital 2D/3D environment. It consists of four main components: virtual product design virtual product simulation virtual product delivery digital manufacturing. Virtual process planning is a relatively new concept for manufacturing companies, although the concept has been in use for the construction industry for several

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years. BIM (building information modelling) is the system used by many constructions, architectural and contracting firms. The detail and scheduling aspects are some of the more valuable aspects of the system. By utilizing virtual process planning, the entire production process can be designed to both maximize efficiency and avoid the trial and error method employed by most manufacturers. Various softwares exist with differing levels of information. The placement of work stations, inventory, personnel and equipment can be valuable for space planning. The interaction of the previously mentioned can also be investigated, allowing the user to identify potential issues from safety, quality and ergonomic standpoints. Virtual Product Development, VPD, is a result of constant efforts in a direction to overcome the limitations of conventional testing procedures. VPD allows a designer to take important design decisions at early stages based on test results, giving control over cost. ‘Virtual product development’ is a strategy for coordinating technology, processes and people to enhance the established product development process. It is a gradual process that efficiently builds up a product virtually. Thus, any changes to be made in its design can be reflected into its physical properties, supply chain, distribution channel and ultimately into the customer view; without physically manufacturing the product. VPD encompasses a wide variety of software tools to cover a product from the conception to the final design and even manufacturing. This path consists of various processes to be carried out at manufacturing level, testing procedures and the final design which is modified automatically based on the test results. One of the major advantages of VPD is its computer brain capability, which can simulate various complex load conditions at a time. Non-linear load conditions are not always possible to create at the testing centre where the prototypes are being tested in conventional testing methods. These complex conditions, if accommodated in the testing, can yield more reliable product form.

15.7 Case Study: BMW Applies Virtual and Augmented Reality in Production The automotive company BMW is providing an insight into its application of virtual and augmented reality in the company’s production system. The company says the fast and flexible planning of new workstations in production is made possible by virtual reality and digitized 3D factory data. It’s still a learning process but augmented reality technologies is making it possible to design training courses without any coding knowledge. It also enables comparison between the camera image and CAD models for fast, straightforward quality checks of parts and vehicles (Edwards, 2019). VR images, or artificially created images, are ever more realistic and hard to distinguish from real pictures. In AR applications, illustrations complement real images. AR and VR images can be viewed in special headsets or on normal tablet computers. In production, these images are powerful tools in numerous use cases in training and qualification, planning of workstations at the assembly line, or quality control. In all applications, the technology keeps modestly in the background. No extensive IT expertise is required to use these applications efficiently. Thanks to

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VR, planners in construction, plant engineering, logistics and assembly can now assess new production areas completely virtually together with production staff and test new processes in 3D. This type of planning is based on digitized factory data available in 3D. For several years now, the BMW Group has been digitally capturing its actual plant structures with special 3D scanners and high-resolution cameras to an accuracy of just a few millimeters. This provides a three-dimensional image, or scatter plot, of production areas and does away with the complex, digital reconstruction of structures and manual on-site recording. When planning future workstations or entire assembly halls, the BMW Group’s business units now combine existing data with a virtual library of shelves, mesh boxes, small load carriers and around 50 other particularly common operating resources. At its Production Academy, the BMW Group trains managers, production planners, process leaders and quality specialists on the principles of lean production. As key communicators, training participants then pass on this knowledge on the shop floor. For about 18 months now, AR goggles have been used in training sessions for engine assembly units. Visualizations guide participants through all process steps and give specific information. Participants can work at their own pace, determining the speed of the training via voice control. Three people can go through the AR training at the same time, after receiving quick guidelines from a trainer who supervises their progress. Previously, a trainer had to work with one person at a time, while with the new system this number has increased to three. Surveys among participants and evaluations of their learning success have shown that there are no differences in quality compared to conventional training courses. The engine assembly training can also be easily adapted to other screw joint processes—thanks to an authoring tool developed by the BMW Group for designing training programs. Setting up a new training program with this software is quick and easy: To complement real images, the relevant points of interest are determined at a regular PC and then set with the aid of AR goggles, and that’s all. In the course of 2019, this software will be made available to all interested staff via the self-service portal. Checking a complex part weighing up to 25 tons, such as a press tool for the production of body parts, can take a lot of time. But speed is an issue: If the inspection takes place at Goods Receipt, an incompletely delivered tool can be returned even before being transferred to an interim storage site. The process is simple: Staff at the Munich location of the BMW Group Toolmaking and Plant Engineering unit mount a standard tablet on a tripod. The built-in camera of the tablet produces an image of the tool. Then, an AR application superimposes this image with the CAD construction data of the tool ordered. Based on an average of 50 criteria, such as drill holes and other clear surface features, the staff can see whether all production specifications have been implemented. In the event of minor deviations, it may make sense to rework the tool on site—because the early detection of the issue leaves sufficient time before the tool has to be sent to the assembly area for completion with further components. Later this year, the toolmaking unit in Munich will completely convert the incoming goods inspection of delivered tools to the AR application. The tedious comparison between CAD data on the screen and the actual tool will then be a thing of the past. The BMW Group

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Fig. 15.3  Augmented and virtual reality at workstations in BMW. (Source: BMW)

also applies target/actual comparisons at its Munich plant. Using an AR application, specialists use pre-series vehicles to check the maturity of construction concepts and the correct installation position of components in these vehicles. The system makes it possible, for instance, to determine whether a side wall (fender) has the right dimensions, an exhaust system is installed in the correct position, or all the necessary parts have been mounted. Visualization of relevant CAD data only takes a few seconds. Data from several parts can be combined as desired and superimposed on the camera image of the tablet PC. An algorithm calculates the best fit that is the ideal position of individual components in relation to each other, and highlights important design features. The application developed jointly with the Fraunhofer Institute for Computer Graphics Research provides important information as to whether any adjustments, be it in vehicle design or manufacturing processes, are necessary before a model can go into series production (Edwards, 2019) (Fig. 15.3).

References Bergmann, F. (2019). New work new culture. Work we want and culture that strengthens us. Hampshire: Zero Books. Edwards, D. (2019). BMW highlights application of virtual and augmented reality in production. Robotics and Automation News. Retrieved September 1, 2020, from https:// roboticsandautomationnews.com/2019/07/09/bmw-highlights-application-of-virtualand-augmented-reality-in-production/24450/

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European Commission. (2020). https://ec.europa.eu/info/index_en Ewing, J. (2020). The pandemic will permanently change the auto industry. Plunging sales could force factories to close and lead to takeovers and mergers, but also bolster sales of electric cars. New York Times. Retrieved September 2, 2020, from https://www.nytimes.com/2020/05/13/ business/auto-­industry-­pandemic.html Gnam, J., Kalmbach, R., & Bürgin, M. (2018). Innovation in the automotive industry: No more experiments. Companies hoping to win and survive in the automotive market must reinvent themselves as the auto industry experiences turbulence. Bain and Company. Retrieved September 2, 2020, from https://www.bain.com/insights/innovation-­in-­the-­automotive-­industry/ Helmold, M. (2020). Total revenue management (TRM): Case studies, best practices and industry insights. New York: Springer. Helmold, M., Dathe, R., Dathe, T., Groß, D.-P., Hummel, F. (2020). Corporate social responsibility im internationalen Kontext. Wettbewerbsvorteile durch nachhaltige Wertschöpfung: Springer Wiesbaden. Schmidt, A. (2019). The future of automotive sales. Automotive. The automotive OEM of the future. Accenture. Retrieved September 2, 2020, from https://www.accenture.com/us-­en/insights/ automotive/future-­automotive-­oem Statista. (2020). www.statista.com

16

New Work in Health Sector

The future depends on what you do today. Mahatma Gandhi

16.1 Global Healthcare Expenditure Healthcare in a country comprises the sum of activities performed either by institutions or individuals pursuing, through the application of medical, paramedical and nursing knowledge and technology, the purposes/core functions of: • Promotion of health and preventing disease • Curing illness and reducing premature mortality • Caring for persons affected by chronic illness who require nursing care • Caring for persons with health-related impairment, disability and handicaps who require nursing care • Assisting patients to die with dignity • Providing and administering public health • Providing and administering health programs, health insurance and other funding arrangements • Health-related functions such as the education and training of the health workforce, research and development in health, and environmental health should be distinguished from the core functions; as far as possible they should be excluded when measuring activities belonging to core healthcare functions The global Healthcare industry is a large business with still some inequalities between developed, developing and underdeveloped countries in the world. In 2016, the world spent more than US$ 8.5 trillion on health, representing close to 10% of the global GDP. The average per capita health expenditure was US$ 1000, but half of the world’s countries spent less than US$ 350 per person. The patterns and trends identified in last year’s report are confirmed by the 2016 data published in WHO’s

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Global Healtcare Expenditure Forecast (in trillion EUR) 12

10

8

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2

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Fig. 16.1  Global healthcare expenditure. (Source: World Health Organisation (WHO, 2020))

Global Health (WHO, 2020). With global health care spending expected to rise at an average of 5% annually until 2023, the healthcare sector will present many opportunities for drug makers, equipment producers, consultants and other stakeholders in this industry. While there will be uncertainties, stakeholders can navigate them by factoring in historic and current drivers of change when strategizing for 2020 and beyond. Among these drivers are a growing and aging population, rising prevalence of chronic diseases, infrastructure investments, technological advancements, evolving care models, higher labour costs amidst workforce shortages, and the expansion of health care systems in developing markets. Health care systems need to work towards a future in which the collective focus shifts away from treatment, to prevention and early intervention (WHO, 2020). Compared to industries with fierce competition, demand pricing elasticity is not that high as competition is smaller and as the governments have to pay cost in this sector. Figure 16.1 shows the spend on healthcare on a global basis.

16.2 Healthcare Sector in Europe The healthcare industry in Europe is an extremely large market as outlined in Fig. 16.2. The level of current healthcare expenditure in Germany was EUR 352 billion in 2016. This is the highest value among all EU member states, compared to an average of 9.1%. France recorded the second highest level of current healthcare expenditure (EUR 257  billion), followed by the United Kingdom (EUR

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European Healthcare Expenditures (in % of the GDP) in 2016 14 12 10 8 6 4

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Fig. 16.2  Healthcare expenditure in the European Union. (Source: European Commission (2020))

234  billion). France, Germany and Sweden had the highest current healthcare expenditure relative to GDP in 2016 among the EU Member States (European Commission, 2018). Current healthcare expenditure in France was equivalent to 11.5% of gross domestic product (GDP), more than in any other EU Member State. The next highest ratios were in Germany with 11.1%and Sweden with 11.0%. The benchmark, however, is Switzerland as Non-EU country with 12.3% of the GDP. By contrast, current healthcare expenditure accounted for less than 7.5% of GDP in 12 Member States, with Romania recording the lowest ratio (5.0%). Relative to population size and in euro terms, current healthcare expenditure was highest among the EU Member States in Luxembourg (EUR 5600 per inhabitant), Sweden (EUR 5100 per inhabitant) and Denmark (EUR 5000 per inhabitant) in 2016. It is interesting to note that Luxembourg had the highest ratio per inhabitant given that it had the second lowest ratio of healthcare expenditure to GDP, reflecting the high level of GDP in Luxembourg. A significant proportion of workers in Luxembourg are cross-border workers and live outside the country; as nonresidents, the expenditure on their healthcare is not included in Luxembourg’s health accounts while their economic activity does contribute to Luxembourg’s GDP.  Three of the EFTA countries Liechtenstein, Switzerland and Norway, each reported higher levels of healthcare expenditure per inhabitant than in any of the Member States. Following on from Luxembourg, Sweden and Denmark, a group of four Member States, the Netherlands, Germany, Austria and Ireland, recorded current healthcare expenditure between EUR 4200 and 4300 per inhabitant. In turn, these were followed at some distance by another

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group of the countries France, Belgium, Finland and the United Kingdom with ratios in the range of EUR 3600–3800 per inhabitant. There was then a relatively large gap to Italy (EUR 2500 per inhabitant), Spain (EUR 2200) and Malta (EUR 2000). All of the remaining Member States recorded average expenditure below EUR 1700 per inhabitant in 2016, with seven of these 14 recording an average spend on healthcare below EUR 1000 per inhabitant. The lowest levels of average expenditure per inhabitant were in Bulgaria (EUR 556) and Romania (EUR 432). As such, the ratio between the highest (Luxembourg) and lowest (Romania) levels of expenditure per inhabitant was 13.0% (European Commission, 2020).

16.3 Healthcare Care Continuum The continuum of care is a concept involving an integrated system of care that guides and tracks patient over time through a comprehensive array of health services spanning all levels of intensity of care. The aim of the continuum is to establish a proactive and cost-effective healthcare system. In healthcare, the continuum of care is now being used to describe how healthcare providers follow a patient from preventive care or prevention, diagnosis, treatment and home care as shown in Fig. 16.3. Depending on the patient, this might involve the use of acute care hospitals, ambulatory care, or long-term care facilities. The coordinated effort to medical care means better outcomes for the patient. Effective treatment over the continuum of care requires attention to many moving parts. Not only does the medical care need to be coordinated between a variety of providers, the financing and record-­ keeping must also be efficient and accessible. The advent of electronic health

Prevention

Diagnosis

Treatment

Home Care

Fig. 16.3  Healthcare continuum. (Source: Author’s Source)

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16.3  Healthcare Care Continuum

records, managed care (quality of care), and payer networks have helped the logistics involved in supporting the continuum of care. The health continuum can also be displayed as the healthcare services from birth to death (end of life care) as outlined in Fig. 16.4. The combination of treatments and the holistic measures over the life span will benefit to the patients and the overall cost situation (Porter & Guth, 2012). For ethical reasons, it is important that healthcare is provided in the highest quality throughout the healthcare continuum in a patient-centred way (Keating, McDermott, & Montgomery, 2013). The health care industry has changed dramatically over the past few decades (European Commission, 2020). Research and development have given us astonishing new treatments, powerful diagnostics, and a rapidly growing wealth of knowledge. Medical specializations and providers have proliferated. Governments and insurers have become powerful players. Patients have become vocal and proactive consumers, ready to search for better options, even if that means going abroad. But, even as health care

Pre-Natal Care End-of-Life

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What Care? Where? Who?

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Fig. 16.4  Healthcare continuum process from birth to end-of-life care. (Source: Author’s Source)

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has become more effective, it has also become more complex and costly. Growing and aging populations are putting increased pressure on health care systems that are already buckling under the burden of chronic diseases like cancer and diabetes.

16.4 New Work in the Healthcare Care Sector An important point among others for New Work in the Health Care sector are flexible working hours and work–life blending (integration of private life and work). Working hours are often a problem in the healthcare industry. Long shifts, inflexible working hours or night work are common because patients need care around the clock. The approaches for mobile working cannot be implemented in the health sector to the same extent as in IT professions. Caregivers can hardly care for their patients via video chat from a café. (But there is also new potential here, for example through robotics in nursing.). In order to relieve the employees here, solutions in the sense of New Work must be discussed and sought in the team that fit the individual life situations. The examples of hospitals that have already established successful models show that this does not have to remain a dream. But there is still plenty of room for improvement in the health sector in the area of ​​self-­determination. In order for employees to be able to make decisions, flat hierarchies and agile procedures are necessary that prevent long decision-making paths. And digitization also helps to relieve people and free up more time for meaningful tasks, such as personal exchange with patients. Routine tasks such as medication planning and security can be handled by computer systems. A study by the management consultancy McKinsey addresses the as yet untapped potential of the digitization of the health care system in Germany: A consistent introduction of paperless data exchange via electronic health records and electronic transfers and prescriptions alone would save enormous amounts of time. Likewise, collaboration and exchange among colleagues and other interested parties with new technologies are much more efficient and have fewer hurdles.

16.5 Trends of New Work and Virtual Reality in Healthcare Care Sector 16.5.1 New Professions in Health Care The digital transformation of the health system has the potential to improve patient care, lay off the people working in the health system and make the system more efficient so that it remains affordable, the commission stressed. The COVID-19 pandemic has shown, the importance of digitization has been clear to everyone. The pandemic is becoming a catalyst for the digital transformation in all areas including the health sector.The pandemic has shown, that at least three new job profiles in the healthcare system are necessary in order to implement digitization in the healthcare system and thus to improve healthcare in the long

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term: a specialist for digital health, a process manager and a system architect for r digital health. Based on new demands, the digital health specialist is a patient-­ related profession. The person in question should look after individual patients immediately and look for individual ways to provide the best possible care. The specialist should provide classic analog help and routine care and, if necessary, fall back on digital technologies, which they introduce the patients to. A relevant part of the work will be the maintenance of health data and the electronic patient record. The specialist needs basic medical and nursing general knowledge and technical know-how. As a link between patients, specialist staff and technological applications, it increases the quality of care on site. According to Ärzteblatt, the process manager for digital health is responsible for the implementation and maintenance of innovative care processes. It is intended to develop medical and nursing processes through the introduction of digital health technologies that are based on a patient collective and their treatment requirements (Ärzteblatt, 2020).

16.5.2 Health by App and Smart Phones Health by Smart Phone and Apps, are considered as a future market that is already showing a very dynamic development in view of the intensive mobile phone use of the German resident population. There are currently over 400,000 health-related smartphone apps available that have been specially developed for smartphones and tablets. Such mobile phone apps can be used, for example, to record health data, monitor body functions and symptoms of illness, remind them to take medication or support personal health and fitness programs. The newly defined use of cell phones by smartphones and tablets forms the basis for the success of such health-related smartphone apps. Such mobile phone apps or a fitness tracker are already preinstalled on many devices and are gladly accepted by smartphone users.

16.5.3 Smart Hospital In the course of digitization, many hospitals want to catch up on their backlog in terms of networking and new technologies. So-called “Smart Hospitals” use, for example, artificial intelligence (AI), 3D printers for implants, networked and remote-controlled robots or digital patient file. But where are the limits? In the end, of course, the focus should be on the person, i.e. the patient. At the same time, however, security in “smart hospitals” must also be guaranteed and systems must always function reliably. After all, it’s about human life. The aim is to use digitized processes and new technologies in wards to better care for patients and to relieve the nursing staff of nonspecialist activities, for example by delegating these activities to the service staff. With this, hospitals hope to save millions and a more efficient way of working within their grown infrastructure. In the following we dare to take a look into the future and explain the possibilities and solutions that should advance your smart hospital through new technologies.

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16.5.4 Cyber Security Health Care In the course of the digital transformation of the healthcare system, the risk of cyber attacks is growing. The increased use of IT systems and the processing and storage of sensitive data pose new challenges for those responsible. The number of cyber attacks has been increasing rapidly for years, making healthcare one of the most popular targets for cyber criminals. The highly professionalized attackers often encounter insufficiently protected systems, networks and untrained users. The attacks range from the theft of sensitive data to the manipulation of infrastructure and medical devices. In the healthcare sector in particular, such attacks can have devastating consequences and even endanger human life, while hospital management is often unaware of its responsibility and liability in this context. In order to recognize the dangers and successfully avert them, a holistic view of the risks is necessary, as is the involvement of all relevant employees—from management to the user.

16.5.5 Process-Driven Health Care Processes will lead health care activities instead of departments in the hospital of the future. A process value chain shows the processes in the hospital of the future from the patient’s perspective. The previous focus on departments, disciplines and hierarchies is no longer applicable. It is noticeable that the processes up to the therapy can take place at any location outside of the Smart Hospital. Telemedicine and online consultation hours make it possible. The Smart Hospital thus saves expensive space that has to be invested in and operated. The employees can concentrate on the essentials. The doctor is increasingly becoming a technology and app consultant and acts on an equal footing with the patient. Patients are valued and taken seriously. Modern clinical decision systems secure critical diagnoses and therapy decisions. The operation is supported by imaging processes that are evaluated in real time. Robots support everything from simple logistical, communicative processes on the wards to complex operations.

16.5.6 Online Video Diagnosis and Consultation Online video consultation is the process of consulting patients regardless of location and state of health. The patient is treated online through telemedical offers. The patient and doctor can access a platform regardless of location and meet for a video consultation in a virtual treatment room. They can communicate with each other via webcam and microphone. This type of communication takes place primarily in the context of pre-inpatient services, in home follow-up treatment or for outpatients for second opinions. The long-term care of patients across sector boundaries also increases the quality of treatment and patient satisfaction, thereby increasing patient loyalty. Health care is best delivered face-to-face, doctor-to-patient. However, many

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patients in rural areas cannot receive personal medical care due to their individual requirements. Even in areas where doctors are geographically easily accessible, a specialist visit or special treatment can be challenging. For patients with chronic illnesses that impede mobility, regular travel to a doctor can be a physical, emotional, and financial burden. The video consultation can help here. Online video consultation hours also enable patients and doctors to meet for consultations wherever they are without having to travel. Doctors can virtually connect with patients via video to get a first impression of their physical and mental state, to jointly view the results of imaging tests and even to make a diagnosis in real time from a computer, tablet or mobile device. Video communication gives general practitioners the ability to connect patients with specialists in areas such as neonatology, psychiatry, nephrology, oncology, and more.

16.5.7 Online Rehabilitation Virtual rehabilitation describes the use of virtual reality for the therapy of psychological, neurological, physiological or cognitive diseases. The therapy is partially or fully supported by the use of virtual technology. Virtual Reality Therapy (VRT) uses specially programmed computers, visual immersion devices and artificially created environments to give the patient a simulated experience that can be used to diagnose and treat psychological conditions that cause difficulties for patients.

16.5.8 Electronic Patient Record (EPR) The development of an electronic and digital patient record (EPR) is a component of digitization in medicine. The digital patient record is a common goal of the federal government and health insurance companies. The EPR was launched in France in 2004. The EPR is voluntary for patients. With the introduction of the EPR, the patient files will be available anytime and anywhere. To this end, a uniform platform is to be set up for the digital files. In addition, the patient should have access to his files himself and possibly add personal data. In addition, if the doctor changes, the file can be automatically and quickly evaluated by the new doctor and the file is not lost. In addition, the patient files are completed by several areas. Thus, the visit to the clinic is entered in the patient file and can be viewed. Not to be forgotten, however, is the security of the files. The EPR should be protected against misuse so that any misappropriation of the data is impossible. The digital file will probably serve as the basis for telemedicine in the future. In the future, technical possibilities such as digital patient files, robots and artificial intelligence in hospitals will facilitate the transition to digitalization and transform our hospitals into smart hospitals.

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16.5.9 Robotics in Health Care Robots are ahead of humans in some things. They never get tired, they do any job, and they never get sick. Applicable in hospitals, they can take over certain activities from doctors and nurses and thus relieve them. A substitute for caring for the patient is never intended, it is purely about relief and taking over activities that ensure that less time remains with the patient! Even today, so-called surgical robots for surgeons are in use during long operations in some facilities and make some operations easier. The strenuous standing around for hours during time-consuming operations is replaced by robots controlled by the surgeon. In this way, a constant concentration of the surgeon is maintained during the operation. This makes them less prone to mistakes, which in turn is good for the patient. Robots can take on various service tasks for nurses and caretakers. They could bring drinks, coolants or magazines to the patient in a fully automated manner and in return dispose of dirty laundry—of course, several compartments are necessary for this in order to meet the hygiene requirements. Even today, robots are mainly involved in hospital logistics and usually bring unseen samples or food from central supply stations to laboratories or wards. With the use of robots in the healthcare sector, hospital managers hope to find solutions for staff bottlenecks and improved handling of patients. By relieving the staff and having more time for the patient. No study has yet been able to sufficiently prove whether the robots have shortened patient stays (Fig. 16.5).

16.6 Case Study: Robots in Japanese Health Care System Japan is a pioneer in robotics. There has long been relying on robotics, primarily because of the demographic change in nursing and healthcare. When using robots on wards, however, many legal and ethical questions still have to be answered in Germany. For example, a robot can never replace a caregiver’s affection and warmth for the patient. Japan’s healthcare robotics market is anticipated to reach a market valuation of US$ 3077.0 million by 2025 expanding significantly n the course of forecast period (2019–2025). The expected growth of the healthcare robotic technology in Japan can be attributed to the combined pressure of skyrocketing costs, aging population, and a shortage of qualified healthcare workers. Medical robots can prove to be a solution to these problems of healthcare industry. Further, numerous initiatives from government and private sector have made Japan one of the leading markets for Artificial Intelligence (AI), robotics, big data and other technology, this would further boost the market for healthcare robotics in Japan. Robots in healthcare help the medical personnel to spend more time with patients, as it can perform the routine

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16.6  Case Study: Robots in Japanese Health Care System

Health Care

New Work

New Job Profiles

◾ Specialist for digital health ◾ A Process Manager ◾ System architect for digital

health

• Health by Apps and Smart Phones • Smart Hospital • Cyber Security • Online Consultation • Process Driven Health Care • Online and Video Consultation and Diagnosis • Online Rehabilition • Electronic Patient Record • Robotics in Healthcare

Fig. 16.5  New trends in health care

tasks. This would further make the medical procedures safer and less costly for patients. Medical robotics is a fast growing and rapidly innovating space, majorly fueled by enhancement of automation technologies, rising incidence of disabilities in human beings and increased incidence of age-related physical ailments in the baby boomer population in Japan. There are different kinds of medical robots available in Japan such as Surgical Robot, Rehabilitation Robot, Diagnostic Robot, Hospital & Pharmacy Robot and other robotic systems. With advancement in robotic technology, future surgical robots will be smaller, less expensive, and easier to operate, which may ultimately facilitate their acceptance in surgery and help to improve their clinical use. Demand for rehabilitation robots could be particularly strong in Japan given the nation’s rapidly greying and shrinking population. As per the Institute of Medicine at the

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Fig. 16.6  Healthcare continuum process from birth to end-of-life care

National Academies of Science, Engineering and Medicine, diagnostic errors cause around 10% of patient deaths and contribute for 6–17% of hospital complications. For such reason, demand for diagnostic robotics has increased in Japan. For hospital and pharmacy Japan uses nursing robots as supplemental healthcare workers in elderly homes. Figure 16.6 shows the help of a robot in the Japanese health care system.

References Ärzteblatt. (2020). Politik. Gesundheitswesen benötigt drei neue Berufsbilder für Digitales. Retrieved September 2, 2020, from https://www.aerzteblatt.de/nachrichten/112595/ Gesundheitswesen-­benoetigt-­drei-­neue-­Berufsbilder-­fuer-­Digitales European Commission. (2018). Healthcare 2018 at a glance. OECD. Retrieved January 1, 2020, from https://ec.europa.eu/health/sites/health/files/state/docs/2018_healthatglance_rep_en.pdf European Commission. (2020). Healthcare expenditure in the European Union 2016. Retrieved January 20, 2020, from https://ec.europa.eu/eurostat/statistics-­explained/index.php/ Healthcare_expenditure_statistics Keating, M., McDermott, A., & Montgomery, K. (Eds.). (2013). Patient centred healthcare. Heidelberg: Springer. Porter, M. E., & Guth, C. (2012). Redefining German healthcare system. Wiesbaden: Springer. WHO. (2020). WHO financing and expenditure. WHO. Retrieved January 5, 2020, from https:// www.who.int/health_financing/topics/resource-­tracking/ghed-­update/en/

New Work and Its Impact on Public Procurement and Global Supply Chains

17

I’m a greater believer in luck, and I find the harder I work the more I have of it. Thomas Jefferson

17.1 COVID-19 and Its Impacts on Global Trade The Covid-19 crisis led to a lockdown in many countries on a global scale. In Germany and other European states, the governments introduced severe lockdown and social distancing measures. The measures were accepted by the majority of people, even though there were concerns on constitutional rights. From March 2020 onwards or earlier, there were severe regulations in Germany, as the numbers of infected people increased significantly (Schuhmacher, 2020). As Germany has a federal structure, the measures were implemented in the federal states. There were severe lockdown regulations like: • Majority of Retailers had to lockdown their stores • Schools were closed and changed to Home Schooling • Distancing Rules were implemented in all areas of life • Bars, restaurants, day care centres, theatres and cinemas had to close • Airlines were forced to ground their aircrafts • Religious gatherings were suspended temporarily • Protective masks were “strongly recommended” and mandatory in public transportation or supermarkets • Strict controls at Germany’s borders were put in place for several weeks Due to the rapidly increasing demand of healthcare equipment, i.e. goggles, masks or equipment, it is visible that global supply chains have been significantly disrupted. Furthermore, countries had to compete on products, affecting drastic price rises, too. The German government had to ask Multinational Companies

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 M. Helmold, New Work, Transformational and Virtual Leadership, Management for Professionals, https://doi.org/10.1007/978-3-030-63315-8_17

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(MNC) to purchase and procure healthcare equipment, as government procurement authorities were not experienced in dealing with global supply chains (Petersen, 2020). Moreover, even though machines for making masks and healthcare equipment are manufactured in Germany, there was no domestic supply. Under pressure to overcome the masks shortage in Germany, the government has promised state subsidies covering 30% of investment costs of companies venturing to launch fabric production. The funding will be capped at €10 million ($10.9 million), but includes a purchase guarantee from the government. The situation displayed, how fragile and disruptive global supply chains can be in crisis situations. Moreover, the situation shows the dependency on imports from China and other countries for pharmaceuticals or medical equipment.

17.2 New Work: Qualification Excellence Initiative in Public Procurement Global Supply Networks or global Supply Chains are described as multi-layer, complex and international networks of manufacturers, intermediaries, service providers, warehouses and customers (Helmold & Terry, 2017). The growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information. Many industries like healthcare and other system-relevant industries are currently faced by fierce competition inside and outside Europe, mainly Asia and China. This is forcing manufacturing companies to concentrate on core competencies and to transfer the production of components, goods and services to external suppliers (Aberdeen Group, 2006). The number of value-adding activities has decreased over the last years constantly and now lies between 10 and 20% in many industries (Helmold & Terry, 2017). Moreover, many activities have been shifted to Indian, Asian and Chinese manufacturers. Such a development has had a great influence on the structure of supply chains, strategic supply management and supplier relationships. Supply chains (the terms “supply chains” and “supply networks” are used synonymously in the literature) have become more complex and international, as pointed out by several authors. Christopher and Peck see the level of complexity increasing in the upstream supply chain management of manufacturing companies in several industries, a trend which is characterized by the growing transfer of activities to suppliers, high numbers of supply chain layers (tiers), and the ongoing globalization of supply chains (Christopher & Peck, 2004). As a consequence, vulnerability and risk exposure have risen significantly. The rapid increase in supplier activities directly affects significant elements in supply (Helmold, 2020). In recent years, many companies have reduced their value-adding activities and implemented efficiency-oriented cost reductions, e.g. outsourcing, single sourcing, low-cost country sourcing, platform concepts, lean management, design-to-cost approaches (Gürtler & Spinler, 2010). SCM has become more important in core and peripheral business areas (Trkman & McCormack, 2009) and is aimed at building resilient supply chains (Christopher & Peck, 2004). Resilience is based on being

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able to anticipate, manage and prevent supply chain disruptions at an early stage. On the other hand, supply risks have risen due to increased dependency on supplier networks (Kersten, Hohrath, & Winter, 2008). In their research “An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-Run Stock Price”, Hendricks and Singhal (2005) found out that enterprises without operational slack and redundancies in their supply chains experience negative stock effects. The authors revealed the tremendous impact of supply chain disruptions on stock price performance and shareholder value. Supply disruptions can easily lead to high recovery cost, waste and sharp decreases in sales, as pointed out in the present study. External customers become dissatisfied and internal core functions (e.g. assembly) are disturbed. In most cases, supply disruptions have negative impacts on brand image, sales figures and the company’s own financial situation (Tomlin, 2006). The wide-ranging effects of globalization are complex and often politically charged. As with major technological advances, globalization benefits society as a whole, while harming certain groups. Understanding the relative costs and benefits can pave the way for alleviating problems while sustaining the wider payoffs. Globalization, coupled with the conventional KPIs that drive the behaviour of Procurement personnel, have led inevitably towards many instances of dependence on single, remote sources. This can work for stable businesses in stable times but can be a hindrance if the market is dynamic, and is disastrous in times of severe disruption such as that which we are experiencing now in the Covid-19 crisis.

17.3 Dependency on China and Other Countries The entire world is currently very reliant on China for imports of personal protective and healthcare equipment. China provided according to the Peterson Institute for international Economics (PIIE) 43% of world imports of face shields, protective garments, mouth-nose-protection equipment, gloves and goggles in 2018 (see Fig. 17.1). Many countries also produce these medical gears locally. But as a share of imports, China is a major player. China was the source of 50% of EU imports of these products from outside the bloc in 2018, including as high as 71% of EU imports of mouth-nose-protective equipment. Similarly, for the USA, China was the source of 48% of imports of PPE in 2018, providing 45% of US imports of protective garments. For the EU, the USA and many other countries, imports of these critical supplies could have been disrupted if China’s exports had shut down in early 2020 (PIIE, 2020). As the coronavirus spread globally in February and March, many countries feared their medical workers would suffer shortages of crucial equipment to treat the growing number of patients. With demand spiking in China, reports on conditions there stoked more concern, given how important it is as a global supplier of hospital gear. Take five pieces of personal protective equipment (PPE) critical to the fight against COVID-19. The statistics in Fig.  17.2 show the ten most important imported goods to Germany in 2018. In total, goods and goods worth around EUR 1.09 trillion were

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Fig. 17.1  Dependency from China for healthcare products. (Source: Author’s Source. Data from PIIE (2020))

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17.3  Dependency on China and Other Countries

Imports to Germany in 2018 (Statistisches Bundesamt) 140 120 100

80 60 40 20 0

Fig. 17.2  Imports from Germany. (Source: Author’s Source) Imports in 2018 (in billions Euro)

Exports in 2018 (in billions Euro)

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Fig. 17.3  Germany’s exports and imports. (Source: Author’s Source, Statistisches Bundesamt)

imported into Germany in 2018. The chart shows, that in 2018, pharmaceutical and medical equipment worth around 57.65 billion euros were imported to Germany. China is for Germany one of the most important trading partners as the Fig. 17.3 shows. Measured by total trade volume—i.e. exports plus imports—China has been Germany’s most important trading partner for 3 years now. The total trade volume between the two countries reached around EUR 199.3 billion. In this ranking, the Netherlands is in second place with goods traffic of 189.4 billion euros, followed by the USA with a trade volume of 178.0 billion euros.

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17.4 Rethinking and Redesigning Supply Chains

Systems-relevant

Strategic

Core Products

A-Category (Strategic)

• • • • •

• Building Strategic Suppliers • National or European Supply Chains • Supply Chain Resilience through constant Supply Management • Make or Buy Studies

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Strategic Procurement

C-Category (Market) • Global Sourcing • Benchmarking and Market Testing • Utilizing Market Mechanisms to obtain Optimum Price and Performance

low

Strategic Importance (to Society)

high

However, the past situation on disruptive global supply chains has shown, that it is necessary to rethink supply strategies for specific commodities. Figure 17.4 illustrates, that supply for selected core and systems-relevant products should be secured via domestic, national supply (or in some cases European supply chains). It is also thinkable, that safety stocks (Germany has safety stocks for oil, FAZ 2020) can be built up to secure supply. Oil is stored as a reserve in Germany for 90 days, this is handled by the “Erdölbevorratungsverband” (English: Raw oil buffer stock association), which is a public government body in Hamburg (Fehr, 2019). These commodities should consist of health care equipment or certain pharmaceutical products. Emphasis must be put on supply chain transparency and resilience, so that supply is always secured and a required ramp-up can be initiated within a few days. A steering committee from politics, society and economy should carefully select the commodities. The authors believe that the liberalization of markets and free international trade are beneficial for economies and people, however, systems-relevant commodities or products must be considered in a different way to preserve the economy and society. Taking into account, that German companies often depend on exports, it is crucial to carefully elaborate on commodities, which fall under the core commodities in Fig. 17.4. Quantitative and qualitative criteria are needed for such selection. Moreover, legal elements need to be considered (Vergaberecht). However, the example of defence products or oil are also based on specific regulations, which allow or disallow certain things.

low

System-Relevance

Safety Stocks Simplified Procurement Strategic Supply Management National Supply Chains Exceptionally Public Ownership

• Oil, Gas & Energy

• Health Care • Health Equipment • Pharmaceutical Products • Defense Technology

Leverage Items

B-Category (Benchmarking) • Global Sourcing vs. European Sources • Constant Benchmarking • Supply Management

Supply Chain Capability and Resilience Importance

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Fig. 17.4  Supply matrix for core and other products. (Source: Author’s Source)

17.6  Case Study: Deutsche Bahn Excellence Programme in Procurement

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17.5 New Work as Chance for Best-in-Class Public Procurement The scenario for securing strategic supply and for establishing resilient supply chains for systems-relevant products can be described as follows in ten recommendations. Ten recommendations for Public Procurement and SCM can be listed as follows: 1. Striving for Organizational Excellence and Professional Processes • Strengthening Public Procurement to Public Procurement 4.0 • Simplification of Procurement Processes for systems-relevant Products • Qualification Initiative of Procurement Professionals in Public Procurement 2. Strategic Supply Management and strategic Commodity Management 3. Selection and Segmentation of system-relevant Commodities (e.g. Energy, Defence, Health Care, Telecommunications) 4. Pro-active Management of Suppliers and Supply Disruptions 5. Strategic Commodity and Supplier Segmentation for system-relevant and non-­ system-­relevant Products 6. Supply Chain Resilience by using European- and Germany-based Supply Networks 7. Government Contribution and Stake in systems-relevant Commodities 8. European- and Germany-focused Supply Chain Networks (Make vs Buy vs Buy Globally) 9. Supply Chain Capacity Management and Supply Evaluation 10. Pro-active Capacity Management of critical Products including safety buffers and ramp-up scenarios 11. Supplier Evaluation and Supply Chain Network Evaluation including the end-­ to-­end supply analysis

17.6 Case Study: Deutsche Bahn Excellence Programme in Procurement The Deutsche Bahn (DB) received the award for its innovative, holistic change concept in corporate purchasing. With this “program for excellence” the development from a simple processor of procurement orders to a sought-after business partner with clear responsibility for costs and results succeeded. This systematic program was set up in 2007 and its major parts were completed in spring 2012. As part of the “Excellence Program”, it was necessary to develop essential instruments and methods in corporate purchasing and to link them with innovative approaches. This includes consistent supplier management and a reduction in the number of creditors while increasing the quality of the master data. The program also includes regular analyses of benchmarks for costs and the preparation of price forecasts for the group. Group-wide rules were also introduced to map savings with IT support in procurement. The application of auctions and game theories in specific awards is

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17  New Work and Its Impact on Public Procurement and Global Supply Chains

Fig. 17.5  General managers Mr. Lin and Dr. Marc Helmold

also part of the package of measures, as is the introduction of formalized quality milestones in all relevant product groups. Career paths and a qualification program have been set up for around 900 employees. The overall concept has improved the quality and reliability of the rail system. For example, the significantly increased material availability significantly shortens the times for maintenance visits. The result effect of the program is more than 100 million EURO. Corporate Purchasing has formulated further development steps for the periods up to 2016 and 2020 (BME, 2013) (Fig. 17.5).

References Aberdeen Group. (2006, June). Industry priorities for visibility, B2B collaboration. Trade compliance and risk management. Global supply chain benchmark report. Boston. Retrieved May 31, 2010, from http://www-­935.ibm.com/services/us/igs/pdf/aberdeen-­benchmark-­report.pdf BME. (2013). BME excellence award. www.bme.de. Retrieved September 4, 2020, from https:// www.bme.de/initiativen/foerderpreise-­awards/innovationspreis/2012-­deutsche-­bahn/ Christopher, M., & Peck, H. (2004). Building the resilient chain. International Journal of Logistics Management, 15(2), 1–5. Fehr, M. (2019). Erdölreserve: Was passiert, wenn das Öl knapp wird? Retrieved May 11, 2020, from https://www.faz.net/aktuell/finanzen/deutschland-­haelt-­reserven-­was-­passiert-­bei-­einer-­ oel-­knappheit-­16387364.html

References

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Gürtler, B., & Spinler, S. (2010). A network-oriented investigation of supply risk and implications to supply risk monitoring. International Journal of Production, 12, 1–27. Helmold, M. (2020). Lean management and Kaizen. Fundamentals from cases and examples in operations and supply chain management. Cham: Springer. Helmold, M., & Terry, B. (2017). Global sourcing and supply management excellence in China. Procurement guide for supply experts. Cham: Springer. Hendricks, K.  B., & Singhal, V.  R. (2005). An empirical analysis of the effect of supply chain disruptions on long-run stock price performance and equity risk of the firm. Production Operations Management, 21(5), 501–522. Kersten, W., Hohrath, P., & Winter, M. (2008). Supply chain risk management. Wirtschaft und Management. Schriftenreihe zur wirtschaftswissenschaftlichen Forschung und Praxis. FH des BFI Wien, 8, 13–15. Petersen, L. (2020). Internes Papier: VW, Lufthansa & Co. sollen für Bundesregierung Schutzmasken besorgen und nach Deutschland schaffen. In: BusinessInsider. Retrieved April 20, 2020, from https://www.businessinsider.de/politik/deutschland/internes-­papier-­vw-­lufthansa-­co-­sollen-­ fuer-­bundesregierung-­schutzmasken-­besorgen-­und-­nach-­deutschland-­schaffen/ PIIE. (2020). Globalization in charts. Peterson Institute for International Economics. Retrieved April 20, 2020, from https://www.piie.com/microsites/globalization/what-­is-­globalization Schuhmacher, E. (2020). Germany. Coronavirus: What are Germany’s updated lockdown measures? In: Deutsche Welle (DW). Retrieved April 20, 2020, from https://www.dw.com/en/ coronavirus-­what-­are-­germanys-­updated-­lockdown-­measures/a-­53139313 Tomlin, B. (2006). On the value of mitigation and contingency strategies for managing supply disruption risks. Management Science, 52(5), 639–657. Trkman, P., & McCormack, K. (2009). Supply chain risks in turbulent environments—A conceptual model for supply chain network risk. International Journal of Production Economics, 119(2), 247–258.

Outlook of New Work 2030

18

No man will make a great leader who wants to do it all himself, or to get all the credit for doing it. Andrew Carnegie

18.1 New Work Is a Holistic Concept The New Work concept is constantly evolving and becoming more and more tangible for all participants in the value chain, especially employees and managers. New work is a holistic concept, which offers a competitive advantage. It offers new values and must be implemented into the corporate culture of organizations and enterprises. On the one hand, technological developments, such as the automation of many jobs, demand new skills from employees. On the other hand, it is precisely these effects of digitization that make it possible to increasingly question the meaning of work and to get to the bottom of one’s own skills (Bergmann, 2019). With New Work, not only are technical innovations integrated into our everyday work, but new values are also established: • Collaboration in and between teams • Independent learning and working • Openness towards others and your own abilities • Community in everyday work • Transparency in the company • Participation in projects to achieve common goals These values often present companies with the challenge of establishing new organizational structures. Mostly flat hierarchies, constructive feedback and the opportunity to participate in decision-making are required.

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18  Outlook of New Work 2030

18.2 New Work as Competitive Advantage New Work is a concept, which includes digitalization, agility, transformation, leaderships and knowledge sharing. Knowledge transfer is currently one of the topics when it comes to digital transformation in companies. At the same time, dealing with knowledge is also a major challenge. Due to increasing flexibility, higher fluctuation and greater complexity, companies are more prone to a loss of knowledge (IUBH, 2020). A continuous and good transfer of knowledge has many advantages. New Work is a concept which shows how skill management, mentoring and peer learning can support the exchange of knowledge, what advantages arise from this and how enterprises can successfully, strategically and effectively release and use the knowledge for their organization. Flexibility and collaboration are fundamental for holistic digitization as part of the New Work paradigm shift. However, neither is possible in silos. A large part of the knowledge lies in the minds of the employees. So how should knowledge transfer work when employees work in their silos? You need structures and working methods that not only allow creative, innovative and free thinking, but actively promote it. The own digital transformation in companies always begins with the successful networking of employees and a flexibilization of the work models and structures—and a lively transfer of knowledge made possible by this. • Release knowledge with strategic skill management • Sharing knowledge together and effectively—peer learning • Mentoring—combining knowledge and experience • Knowledge transfer and networking as a prerequisite for digital change • Advantages through continuous and good knowledge transfer • This is how it works—releasing and using knowledge • Release knowledge with strategic skill management There is already an incredible amount of knowledge, creativity and innovation potential in every organization. But which hidden and unused potential is there exactly? How can they be raised and resources better distributed? Good skill management offers solutions. Employees can work more according to their needs and feel more effective. That makes employees happier and more motivated. And therefore also more productive. Companies will gain a significant competitive advantage through New Work, efficient employees and a continuous and good knowledge transfer (Brommer et al., 2019). In-house knowledge transfer is therefore worthwhile at all levels. Relevant knowledge remains in the company, employees can work together more collaboratively and complement each other optimally—this promotes the ability to innovate. It is easier for new colleagues to train and knowledge is available to all employees more quickly. All of these aspects also mean that the company can save time and money. Systematic knowledge transfer contributes to the optimization of work and business processes Mistakes and duplication of work can be avoided Problems can be identified more easily and implemented in new solutions—through diverse perspectives. Key knowledge is lost less often—predecessors, successors and the organization benefit from this There is a continuous flow of knowledge between older

References

195

and younger colleagues from which all sides benefit. Different competencies can be linked with each other—a successful knowledge transfer makes the team more efficient. Experts can be found more easily and make their knowledge available. The networking of employees with one another and the collaborative work also ensure a stronger bond with the company.

References Bergmann, F. (2019). New work new culture. Work we want and culture that strengthens us. Hampshire: Zero Books. Brommer, D., Hockling, S., & Leopold, A. (2019). Faszination new work: 50 Impulse für die neue Arbeitswelt. Wiesbaden: Springer. IUBH. (2020). Career partner group. Home office studie 06.2020. Retrieved August 31, 2020, from https://www.iubh-­university.de/wp-­content/uploads/2008_IUBH-­Home-­Office-­Studie_fin.pdf

Glossary of New Work and Other Terms

To succeed in life, you need two things: ignorance and confidence. Mark Twain

Additive Manufacturing

 dditive manufacturing (AM) is the A industrial production name for 3D printing, a computer-controlled process that creates three-dimensional objects by depositing materials, usually in layers. The official industry standard term is ASTM F2792 for all applications of the 3D technology. It is defined as the process of joining materials to make objects from 3D model data, usually layer upon layer, as opposed to subtractive manufacturing methodologies. ADKAR Change Management Model  The ADKAR change management model was created by Jeffery Hiatt in 1996. The change management concept is a bottom-up method which focuses on the individuals behind the change. It is less of a sequential method and more of a set of goals to reach, with each goal making up a letter of the acronym. By focusing on achieving the following five goals, the ADKAR model can be used to effectively plan out change on both an individual and an organizational level.

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197

198

Agile Company

Agility

Application

Glossary of New Work and Other Terms

An agile enterprise is an organization that responds quickly to changes in the market­ place and work­place trends. Agile companies are aware that organizational and transformational changes are inevitable. Agile enterprises regularly assess their practices and processes to ensure they are conducive to optimal employee engagement, morale and performance. Digitization accelerates the innovation process. Technology and product cycles are getting shorter and shorter. This dynamic poses a major challenge for companies: They have to react ever faster to complex changes. But the reaction alone is not enough. If you want to be successful, you have to actively shape change. This is the only way to secure your own market position in the long term. Agility describes not only the ability to use change ­positively but also the stability of the company as a safeguard against change. The development and application of job competencies to select employees who create competitive advantage is an important feature of the human resource paradigm around the world. A competency model is a cluster of competencies that specifies effective performance in a particular work environment. Possession of appropriate competencies by its workers affects organizational performance and provides competitive advantage. Human Resource Management plays an important role in giving a competitive edge to an organization.

Glossary of New Work and Other Terms

Augmented Reality

Big Data

Bushido

Change

Cloud Computing

Cognition

199

Augmented reality (AR) is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory and olfactory. Big Data is a phrase used to mean a massive volume of both structured and unstructured data that is so large, and it is difficult to process using traditional database and software techniques. In most enterprise scenarios, the volume of data is too big or it moves too fast or it exceeds the current processing capacity. Bushido is the definition for the code of ethics and ideals that dictated the samurai way of life in ancient Japan Change and Change Management includes all tasks, measures and activities that are intended to bring about a comprehensive, crossdepartmental and far-reaching change in terms of content—to implement new strategies, structures, systems, processes or behaviors—in an organization. Cloud computing is a type of computing that relies on shared computing resources rather than having local servers or personal devices to handle applications. In its most simple description, cloud computing is taking services (“cloud services”) and moving them outside an organization’s IT system and environment. Cognition is the process by which one acquires knowledge through experience, thought and sensory input. When a person uses this cognition to integrate various inputs to

200

Collaboration

Competencies

Competency Zone

Glossary of New Work and Other Terms

create an understanding, it is called as cognitive thinking. Cognitive skills are used to comprehend, process, remember and apply incoming information. Collaboration is the working practice whereby individual employees work together in teams or groups towards a common purpose to achieve a specific business goal. Collaboration enables individuals to work together to achieve a defined and common business purpose. Managers must prioritize team assignments and group work. Teamwork is the collaborative effort of this constellation to achieve this common goal or to complete a task in the most effective and efficient way. This concept is seen within the greater framework of a team, which is a group of interdependent individuals who work together towards a common goal. Competencies are a set of integrated knowledge, abilities and attributes that translate into behaviours and help define, in greater detail, what is needed to successfully perform the job. Competencies are not skills, although they are similar. Skills are learned, while competencies are inherent qualities an individual possesses, combining skills, knowledge and the ability. Competency Zone can be described as the boundaries, where a person has strengths and unique skills in a specific job environment. Competencies are the abilities of employees to apply or use a set of related knowledge, skills and capabilities required to successfully perform specific work functions or tasks in a defined work setting.

Glossary of New Work and Other Terms

Corporate Social Responsibility

Cybersecurity

Diversity

Internet of Things

201

Competencies consist of five elements and can be described as knowledge, skills, application, cognition and management. Corporate Social Responsibility (CSR) is a business model that helps a company be socially accountable and responsible. Cybersecurity is the protection of internet-connected systems, including hardware, software and data, from cyberattacks. In a computing context, security comprises cybersecurity and physical security— both are used by enterprises to protect against unauthorized access to data centres and other computerized systems. The concept of diversity has its origins in the US civil rights movement, which fought against racism against people of colour. Diversity thus initially stood for the creation of equal opportunities for groups who are disadvantaged according to certain characteristics. In the USA, this resulted in the AntiDiscrimination Act and the Affirmative Action to promote disadvantaged groups according to the criteria of race, gender, skin colour, ethnic origin, age, disability or religion. The civil rights movement of the USA had a great influence on the development of further social movements of previously disadvantaged and discriminated groups, e.g. B, on the movement of the Native Americans. The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to

202

Jidoka

Job Sharing

Knowledge

Kotter Change Management Model

Glossary of New Work and Other Terms

transfer data over a network without requiring human-to-human or human-to-computer interaction. The Lean concept of empowerment and stopping production to fix a problem found in production is called “jidoka” which means “getting it right the first time” rather than passing it on to the customer (next work station). Jidoka is a prime example of the Lean philosophy of “Quality at the Source” which emphasizes that every production worker (and supplier) is responsible and empowered for providing quality material to their customer. The flexible working model job sharing means that at least two people share a full-time position in the company. Companies such as B.  Deutsche Bahn or Beiersdorf have already introduced the job sharing model. Read interviews with people who are already trying out job sharing here. Knowledge is a familiarity, awareness or understanding of a certain activity or process, such as facts (propositional knowledge), skills (procedural knowledge) or objects (acquaintance knowledge). The term “knowledge” can refer to a theoretical or practical understanding of a subject. Eight-Step Model for Change Management. The eight steps include establishing a sense of urgency, creating the guiding coalition, developing a vision and strategy, communicating the change vision, empowering employees for broad-based action, generating short-term wins, consolidating gains and producing more change

Glossary of New Work and Other Terms

203

and anchoring new approaches in the culture. Kübler-Ross Change Management Model In 1969, Kübler-Ross described five stages of grief in her book “On Death and Dying”. These stages represent the normal range of feelings people experience when dealing with change in their lives or in the workplace. All changes involve loss at some level. The “Five Stages” model is used to understand how people react to change at different times (Kessler and KüblerRoss 2005). The stages were first observed as a human response to learning about terminal illness. They have also been used to understand our individual responses to all kinds of change. The five stages of grief Kübler-Ross observed and wrote about are Denial, Anger, Confusion, Crisis and Acceptance. Lean Management In contrast to the traditional manufacturing concepts, the Lean Management concept is based on a reduction of throughput times, low inventories and the permanent elimination of non-value-adding activities throughout the value chain (Ohno 1990). These (non-valueadding) activities are unnecessary and represent waste or “Muda” (Japanese = 無駄). Lean Manufacturing Lean Manufacturing concepts focus primarily on improvements of the operational processes and efficiency. Another goal is to reduce waste and thus to reduce operating costs. In the last years, sustainability has become more and more important, so that any organization must deploy sustainability elements alongside a lean organization. Lean Simulations Lean simulations include a set of hands-on experiments to teach

204

Management

McKinsey 7s Model

New Work

Online Video Health Consultation

Glossary of New Work and Other Terms

employees about systems and process improvement in all areas of the value chain. Lean simulations can focus on design, manufacturing, capacity planning or supply chain design. Purpose of simulations are to understand the implications of input variables and alternations of the value chain elements. Management is the process of evaluating, managing and developing the necessary skill sets of employees. Cornerstone Succession helps organizations create and define core, leadership and job-specific skills or competencies by identifying the key abilities required to improve performance and achieve success. McKinsey 7s model is a tool (Fig. 3.6) that analyses firm’s organizational design by looking at seven key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives. The concept of New Work describes the new way of working of today’s society in the global and digital age. The term was coined by the AustroAmerican social philosopher Frithjof Bergmann and is based on his research on the notion of freedom and the assumption that the previous work system was outdated. Online video consultation is the process of consulting patients regardless of location and state of health. The patient is treated online through telemedical offers. The patient and doctor can access a platform regardless of location and

Glossary of New Work and Other Terms

205

meet for a video consultation in a virtual treatment room. Self-Awareness Self-awareness means you are always fully aware of how you feel, and you understand the effect your feelings and your actions can have on the people around you. A selfaware leader maintains a clear picture of their strengths and weaknesses, and despite their position of authority and power still operates from a mindset of humility. Shared Service Centres (SSO) Companies use SSOs to centralize and streamline internal services, i.e. accounts, human resources, information technology or other activities. The establishment of shared service centres in a company is a form of centralization or concentration of the organization. Taiiku Taiiku (体育) modern education systems understand taiiku as physical education (PE). It is seen as simply a way to make students exercise their bodies through sports. Tokuiku Tokuiku(徳育) kuiku means to develop your rational interpersonal skills as a leader. Virtual Work Teams Similar to an individual with autonomy at the same physical work place, there are virtual autonomous work group or teams in different locations. These teams are geographically separated, often in different time zones, and work jointly on certain projects. Virtual Work Teams require specific leadership styles of trust, support and empathy.

Index

A Additive manufacturing (AM), 111, 117, 197 Artificial intelligence (AI), 45, 111, 113–119, 130–132, 147, 162, 163, 177, 179, 180 Augmented reality (AR), 15, 117, 162, 166–168, 199 Awareness, Desire, Knowledge, Ability, Reinforcement (ADKAR), 41, 197 B Bayerische Motorenwerke (BMW), 75–77, 111, 161, 165–168 Big data, 20, 88, 111, 117, 180, 199 Bushido, 132–133, 199 C Change management, 6, 22, 24, 26, 31–43, 101, 197, 199, 202 Cognition, 21, 22, 199, 201 Comfort, Collaboration, Change, Challenge, Competency (5C), 25 Completeness, Conciseness, Consideration, Concreteness, Courtesy, Clearness, Correctness (7C), 59 Computer-aided design (CAD), 165–169 Corporate social responsibility (CSR), 137–142, 201 D Deutsche Bahn (DB), 85, 95–96, 189–190, 202 Deutsche Telekom (DT), 3, 15–16 Diversity, 5, 29, 105–110, 146, 201

E Electronic patient record (EPR), 177, 179 Emotional intelligence (EI), 24, 91–96 G Global teams, 3, 56, 59 I International University (IUBH), 84, 145, 146, 151, 152, 154–155, 194 Internet of People (IoP), 114 Internet of Things (IoT), 113, 114, 116, 201 J Jidoka, 71, 202 Job enlargement, 75, 76 Job enrichment, 75, 76 Job rotation, 74–77 Job sharing, 4, 28, 85–86, 202 K Key performance indicator, 8 Kotter Change Management Model, 202, 203 Kübler-Ross Change Management Model, 203 L Leaderships, 5–8, 19–22, 40, 49, 50, 52, 57, 64, 67–69, 71–74, 76, 91, 92, 95, 101, 107–108, 121, 122, 131, 157, 160, 163, 194, 204, 205 Lean management, 1, 14, 20, 31, 46, 68, 115–117, 121–130, 134, 184, 203 Lean simulations, 116, 203, 204 Lewin Change Management Model, 33

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Index

208 M Management, 5, 6, 8–10, 12, 14, 19–22, 24, 25, 27, 28, 31, 38, 39, 41, 48, 57, 63–67, 71–74, 86, 97–103, 106, 108, 109, 111, 116, 121–135, 137, 139, 141–143, 145, 160, 164–165, 176, 178, 184, 189, 194, 198, 201, 204 McKInsey 7S Model, 42, 204 Multinational companies (MNC), 106, 137, 183–184 N National Association of Colleges and Employers (NACE), 19 New Work, 1–16, 19–29, 31–43, 45–54, 64–77, 79–83, 91–98, 100–102, 105–111, 113–119, 121–135, 137–139, 150–155, 157–159, 161, 163–166, 176–180, 184–185, 189, 193–195, 197–205 P Performance, 2, 8, 10–12, 14, 19–29, 42, 46–48, 50, 57, 58, 63–66, 72, 83, 93, 99, 106, 138, 160, 165, 185, 198, 204 Q Quality, 19, 20, 23, 31, 46, 52, 53, 71, 75–77, 83, 92, 94, 102, 127, 129, 133, 134, 139, 141, 162, 163, 166, 167, 175, 177, 178, 189, 190, 200, 202

R Robotic Process Automation (RPA), 163 S Shared service centres (SSO), 57, 205 T Taiiku, 131, 132, 205 Teams, 3, 5, 8, 13, 20, 23, 25, 26, 40, 41, 43, 50–76, 83, 87, 91, 93–95, 101, 102, 105–111, 118, 122, 123, 134, 149–150, 152, 154, 164, 176, 193, 195, 200, 205 Toyota Production System (TPS), 26, 122, 124, 127–128, 133 Transformation, 1–4, 6, 7, 9, 22, 31, 35, 37, 38, 41, 45, 79, 158–161, 163, 176, 178, 194 Transformational leadership, 27, 46, 49, 67–77 V Virtual Production Development (VPD), 165–166 Virtual Production Management (VPM), 165 Virtual Production Planning (VPP), 165 Virtual reality, 165, 166, 168, 179 Virtual Reality Therapy (VRT), 179 Virtual teams, 5, 55–64, 74, 79, 83, 102 Volkswagen, 141–142, 158, 165