Peter Drucker Forum: Leaders, you are crazy if you do not invest in your people

We are almost in a permanent crisis where leaders increasingly need to be visionaries and architects, and they are expected to co-create value more than ever before. They must simultaneously be catalysts for change and coaches, but most importantly, they must create human-centered organizations. Simply put, today’s leaders are tasked with ‘absorbing’ anxiety while spreading energy, which is no easy feat. These are the main insights from last week’s Peter Drucker Forum, which has been held in Vienna for the 14th consecutive year in honor of the Austrian writer and management consultant of the same name.

Builders of a Good Environment

Why today’s leaders should be architects was explained by Tammy Erickson, a professor at the London Business School.

– They must create an environment where many people will decide to give their best. Today’s leadership means creating an environment where people want to be – explained Erickson, adding that for a company to be successful, it is necessary to demand from people – thinking.

– I call it mobilizing intelligence. If you want people to be innovative, you have to work differently. For young people, security today is the recognition of their skills. It is wise for them to leave if they feel they are not learning from you, and you are crazy if you do not invest in your people – Erickson was direct.

If your employees cannot answer the question of what the purpose of your organization is, then you have a problem, said Xavier Huillard, CEO of the Vinci group, adding that we need leaders who are humble, generous, and curious.

– Leaders are there to help people grow and develop their talents. Our job is to hire ‘ordinary’ people and develop their talents so that they later become managers. This way, it is still possible to retain employees – said Huillard, who believes that the only way to grow is through decentralization in companies.

Visionaries of Tomorrow

When times are tough, as they are today, you must fight for the survival of your company. However, when business is not threatened, there is more time for creativity. That is why leaders must be adaptable, have a clear vision, and see things that are not immediately visible, said Helmut Reisinger, CEO of Palo Alto Networks for the EMEA region and Latin America.

– Clarity is very important for people to know which mountain to climb. Another important thing is to create an environment of trust, to find the right way to climb that mountain – explained Reisinger, emphasizing the importance of trust among teams and employees in companies.

– Previously, we were the ones who could choose who would be part of our team. Today, the situation is reversed. We must know how to attract the best talents to stimulate our growth. Are we sure that our leaders understand the needs of younger generations well and accept this environment of trust that attracts young and talented people? – Reisinger asked.

People Want to Work for People

Tina Müller, a member of the Supervisory Board and former CEO of the Douglas group, warned that many companies do not have long-term goals to ensure competitiveness in the future.

– Why are startups so good at innovation, while large corporations are not? Why do talents leave large companies and start their own startups? The belief in innovation is always exciting. How to bring that excitement to large corporations? Innovation is the future, and we need it. We can all learn from the startup scene, even though it is currently struggling with scaling – Müller emphasized, adding that it is important to maintain optimism in the innovation process.

In surveys recently conducted at Douglas group, they found that employees value purpose, but also who they work for.

– People want to work for people. They look at who leads the company, not what the company brand is. We will increasingly face this. The leadership team is the sponsor of the company, and the human factor is becoming increasingly important – said Müller.

– On your agenda, you must find more time to spend with your people, your talents. Often in times of crisis, everything comes down to efficiency, but we must be more sensitive to the demands of our organization and people – Müller concluded.

Spreading Positive Energy

To lead successful organizations, leaders must first start with themselves and take care of their health. Huillard emphasizes that the mission of a leader is to absorb anxiety and in return give energy, not additional anxiety. Since they must ‘absorb’ anxiety, that is, all the bad things happening in times of crisis, while at the same time spreading positive energy, the real question is how they nourish and renew their own energy.

– The best way to absorb that anxiety is to be passionate about your work and human beings and to love them – Huillard was honest.

Müller often takes a moment of silence and reflection for herself, and in this way, she recharges her energy, recharges her batteries. She says it is easier to do this in the company of others, but it is deeper when you do it alone. Reisinger finds energy in spending time with family and friends, and since he grew up on a farm, he enjoys being in a large garden. Erickson, on the other hand, tries to focus on what is most important at that moment.