Tips from four HR managers on leadership in a crisis

Cologne When the corona virus paralyzed the economy in 2020, companies that were particularly hard hit by the crisis longed for the situation to ease soon. In 2021, the Ifo business climate index showed that the German economy was on the up again. But with the start of the Ukraine war, the business climate slacked off again in early 2022. After two years of the pandemic, the problems worsened: interrupted supply chains, a lack of raw materials, plus inflation and an impending economic downturn.

Crises and how to deal with them is now part of everyday business for many companies. But how do they manage to assert themselves in an economically and politically increasingly complex and volatile environment? What management skills are required to lead a company through a crisis? Two HR consultants explain which skills are currently important.

Maria Baseler joined Russell Reynolds’ Frankfurt office as a partner in May 2022, where she will strengthen the Banking and Private Equity practice. She knows the financial sector both as a consultant and as the director of a financial institution. Her own CV shows that you don’t necessarily have to have a traditional business education for a managerial position in the financial sector. Basler studied physics. “It’s more about having a basic understanding of economic relationships,” she says.

In addition, an understanding of technology and processes from the customer’s point of view are now particularly important. “Today, banks are actually big IT companies,” explains Basler. After this area was outsourced for a long time, the trend is now going back to in-house IT. This offers additional career opportunities for all technically experienced people.

If certain specialist knowledge is missing for the targeted career step, Basler recommends targeted further training. “Amassing technical qualifications indiscriminately tends to yield less,” she says. Instead, she recommends offers that are closely linked to professional activity – such as part-time courses in management. A positive side effect: the personal network can be expanded.

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The higher the desired position is in the company, the more important the issue of leadership becomes. “I have to be someone who can motivate and inspire a team,” says Basler. In uncertain times, the topic of “psychological safety” is added. “The manager has to set a direction and give the employees a feeling of security.” At the same time, it is important to remain agile and to be able to adjust the direction – and to question yourself from time to time.

Despite all the difficulties, Basler can also see something positive in the current crisis situation with regard to the financial sector. “The social benefit of a bank has come back into focus,” she says. Despite the increasing number of crises, managers can expect an attractive income. “Salaries in the financial sector are now strongly linked to the long-term success of the company.”

Arne Adrian has been a partner and co-shareholder at the Pawlik Group for 20 years, as well as chairman of the Personnel Consulting Association in the Federal Association of German Management Consultancies. He primarily advises large medium-sized companies on personnel selection. For Adrian, the focus at management level is on people management, i.e. the ability to base people management on core values ​​such as empathy, motivation and understanding. Especially in uncertain times, this ability proves to be indispensable.

“All the influencing factors that produce pressure also have a negative effect on performance,” says Adrian. Only those who manage to make their employees happy will also lead the company to success.

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The times of the boss as the sole decision-maker and the always smartest in the room are long gone. “It’s much more important to bring together the smartest people around you,” says Adrian, “I have to be able to identify talent and recognize potential.” However, they not only have to be discovered, but also skillfully developed into an efficient team.

Creating a bond is the keyword, also with regard to diversity. “Diversity isn’t just about skin color and religion, it’s also about bringing people with different views and styles together,” says Adrian. Differences between people must be seen as an advantage instead of a risk.

Learn new skills through Youtube tutorials

What can you do to develop these skills? “Stay curious and try things out,” advises Adrian. It doesn’t have to be an expensive postgraduate course. It is also worth getting a taste of new subjects out of personal interest, for example learning to program with YouTube tutorials or taking a language course. The ability to innovate, creativity and flexibility in thinking are particularly important. “There is a great need for people who bring a diverse personality to the table,” says Adrian.

It is becoming increasingly important for managers to use experience from other roles and to be able to think outside the box. It’s also worth it financially. Salaries at management level in medium-sized companies have increased fundamentally since the pandemic.

Katja Hartert has worked at Odgers Berndtson since 2009 and is a partner in the Frankfurt office. She has been filling IT positions across all industries for more than 15 years. The need is currently greater than ever because new functions are constantly being created in the course of digitization. The question that comes up more and more frequently is: where do people work? In the home office, on site or in a hybrid model?

The new way of working has added another component to the requirement profile for managers. “The topic of virtual leadership and the personality of a manager play a major role today,” says Hartert. You have to be able to be present on the screen, take people with you and convey topics.

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This is particularly important in a tense political or economic situation. “I have to have the empathy to look at the other person when something is wrong,” says Hartert – not only in a personal conversation in the office, but also via video conference. And: “Communication and transparency are very important here,” says Hartert.

Programming experience is no longer absolutely necessary – knowledge of the cloud is an advantage

Those who bring these soft skills along with their professional qualifications are in good hands. For a management job in the IT department of a company, it is no longer absolutely necessary to have a computer science degree and programming experience. A basic understanding of the topic is often enough. “Companies are also looking for IT lateral entrants in their specialist areas,” says Hartert.

The advantage: The candidates are already familiar with the business processes and know the technologies with which the company works. “You can build on that with targeted additional qualifications,” says Hartert.

Employers are particularly interested in agile methods or expertise in the cloud. Anyone who acquires such additional knowledge can also expect a lot financially. Because of the many vacancies, companies are literally competing for well-trained employees.

Tim Oldiges founded Headgate GmbH in 2017. Since then, as managing director and shareholder, he has been primarily responsible for filling management positions in large family companies. Many of his customers come from industry – and are currently desperately looking for executives who want to commit themselves in the long term. “Especially in turbulent times, many people long for consistency,” says Oldiges. But how do you manage to hold your ground in a top position in times of crisis?
In order to lead others well through a crisis, you first have to start with yourself, says Oldiges. “Leadership also means a lot of self-leadership.” This includes, for example, not getting frustrated even with minor setbacks and having the courage to swim against the tide from time to time. “Ultimately, we need managers who, despite great uncertainty, go through life with self-confidence.”

But it is also about taking people with you in the professional environment. “I have to be able to assert myself and be enthusiastic about my path, but I can’t be too dominant either.” It’s all about the balance.
Are leadership qualities something you are born with? “Of course, certain personality criteria are incredibly important, especially in difficult phases like the current one,” says Oldiges.

“Anyone who changes jobs now can achieve a significant salary increase”

Managers always benefit from a certain level of self-assurance and self-confidence. “Leadership can still be learned.” From Oldiges’ point of view, strategic career planning can help here. Anyone aiming for a managerial position should define their goals at an early stage, regardless of their specialist area or area of ​​responsibility. “As a candidate, I can ask myself what I need to get there,” says Oldiges.

Because possible hurdles are not always foreseeable, especially in turbulent times, Oldiges always focuses on broader know-how when looking for suitable managers. “I’m typically looking for people who are more generalistic,” he says. “Nowadays technologies are constantly changing, so yesterday’s knowledge may not always help me.”

The current lack of suitable candidates is bad for companies, but good for applicants. “Anyone who changes jobs now can achieve a significant increase in salary,” says Oldiges. If you want to get into a management position, you have to make yourself known on the rather non-transparent German job market. “It’s not enough if I send out four or five applications,” says Oldiges.

Since top positions in particular are not listed in a central job exchange, he advises drawing the attention of as many people and companies in the target industry as possible. “The more people know you want to get there, the more people can help you get there.”

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