Leading in the Digital Age

The rapid pace of digitization, exacerbated by the Corona pandemic, means that leaders are facing various challenges. How can digital leadership succeed in the long term? Two guest articles.

Digitization is changing our world of work at a dizzying speed and bringing about new challenges for business leaders. With the change of tasks and key attributes needed, decision-makers should rethink their leadership style and the understanding of their role. What are the key characteristics and how can digital collaboration be successful in the long term?

Prof. Dr. Claudia Peus, Vice President for Talent Management and Diversity and Founding Director of TUM Institute for LifeLong Learning, and Dr. Alexandra Hauser, Head of Learning Design Executive and Professional Education at TUM Institute for LifeLong Learning, address these questions in two guest articles.

Creating trust as essential leadership task

Digital tools and the technology become ever more indispensable in today’s working world, and yet collaboration continues to center around human nature. Whether working together digitally or not, we are always bringing aspects of our individual personalities, goals and desires into the (virtual) room.

A central thesis put forward by Prof. Dr. Peus and Dr. Hauser states: Leader’s values determine their leadership actions and depends a lot on a leader’s faith in human nature. Whether they perceive employees as having an inherent dislike of work who will try and avoid it where possible, or indeed if they believe that employees are committed to their work and can therefore be trusted with the tasks assigned to them. If leaders believe the latter, they won’t feel the need to control their team. Leaders must recognize the basic needs of their employees and act according to their defined values in order to lead consistently and maintain long-term relationships. A key maxim here is “trust over control.”

In 2019, for example, 500 managers surveyed in a joint study by “Wertekommission” and the Chair of Research and Science Management at the Technical University of Munich cited trust as the most central value to their work – by a clear margin. Working from home and remote working give this value a new, special emphasis and relevance.

Technology competence: You never stop learning when it comes to digitization

Naturally, digital leadership cannot exist without leaders possessing technological competence. According to Peus and Hauser, decision-makers should be aware of the latest digital developments and implement them within the ecosystem of their own business. In view of the constant changes, leaders should see lifelong learning as an opportunity for themselves, and their teams, and support their employees accordingly. Continuing education – and not only in technology-oriented areas – plays a central role in remaining flexible and being able to respond quickly to changes in a competitive environment.

For example, leaders can implement the “reverse mentoring” model in the area of technological competence: Young employees familiarize themselves with technological changes and support the team, including their team lead, in the successful deployment.

Further information

Under the following links, you will find the complete guest articles by Prof. Dr. Claudia Peus and Dr. Alexandra Hauser with further theses and ideas in the area of leading in the digital age:

• Reinventing Leadership – Herausforderung Digitalisierung – acht Thesen für zukunftsorientiertes Führungshandeln, wirtschaftspsychologie aktuell 2/2020 (in German)
• Leading in the Digital Age, The Capco Institute Journal of Financial Transformation, #52 January 2021 (in English)