2/2018

THE DEININGER MAGAZINE FOR DECIS ION MAKERS

Automotive industry on the move

The impact of structural changes on employee leadership

Global Player Wolfgang Marzin leads the

successful internationalization of Messe Frankfurt

Lobbying for a good causeProf Michael Eilfort on old-age poverty,

politics and Market Economy Foundation objectives

04 FRANKLY SPEAKING Rainer Pauly on Poland’s potential as an investment location

04 UP IN THE AIR Agility, working hours, productivity and data privacy

06 TOP STORY A man of the world with his feet on the ground Wolfgang Marzin heads the most successful German trade fair

company (Messe) - he is based in Frankfurt, but is a global player

10 WORKOUT Machines are gaining ground

12 SPOTLIGHT In the fast lane Kai Deininger and Gajendra Chandel, Chief Human Resources

Officer of Tata Motors, on changes in the automobile industry

14 FOCUS ‘We are facing the emigration of qualified

young people’ 6 questions for Prof Dr Michael Eilfort, Director of

the Market Economy Foundation

16 BEST PRACTICE ‘You just have to be authentic’ Karl-Heinz Streibich, former CEO of Software AG, believes in

technological progress, communication and building confidence – Jörg Albold examines digitization in Germany

19 SNIPPET Commentary by Peter Lückemeier: The end of the tie?

20 TREND SCOUT 4 tips for ladies travelling on business

21 DEININGER’S LOUNGE noma Copenhagen: innovative award-winning cuisine

22 DEININGER INTERNATIONAL Fitness for managers: Tips from local DEININGER consultants

INTRO

IMPRINTVision D – The DEININGER Magazine for Decision MakersDEININGER CONSULTING, Hamburger Allee 4, 60486 Frankfurt am MainTel: +49 69 79 20 40; Email: service@deininger.de; www.deininger.deEditorial Team: Prof Dr Björn P Böer, Peter Lückemeier, Colleen HaasArt Direction: Wolfgang Hanauer ; Print: Kuthal Print GmbH & Co KG, MainaschaffPublisher & Editorial Contact: wdv OHG, Bad HomburgTel: + 49 69 981 904 845; Email: b.boeer@wdv.de; www.wdv.de

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that anyone who has visions should see a doctor. I am reluctant to contradict the highly respected former chancellor, but that is precisely what I so often miss in business today: vision.

I believe that too much is repaired. Nothing against cleaning up in companies that need it.

However, for all of the necessary improvements, positive, constructive groundwork is often neglected; hardly any clearly recognizable strategies for the future. Neither the employees nor the customers have any idea where the journey is headed. That weakens the position of a company in international markets in the long term.

If you have a vision, you must be clear in communicating it, take others along and inspire them to share your goal. That primarily means your own people, but the environment around you, media and society should also be aware of the core message. That requires a continuous desire to communicate and that makes it challenging. But no one ever reached the summit in an elevator!

With this in mind, I wish you all the best and hope that you enjoy reading Vision D.

S P E A K E R ’ S C O R N E R

Helmut Schmidt once said

Photo: Rainer Wohlfahrt

14

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Cover: Getty Im

ages

Cover Motif: The white marble Taj Mahal in Agra was built between 1631 and 1648, commissioned by the Mughal Emperor Shah Jahan in memory of his wife, Mumtaz Mahal, who died in 1631. Construction of the 58-metre-high and 56-metre-wide mausoleum is estimated to have employed some 20,000 workers and 1,000 elephants.

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Digitization drives productivity

An indicator that the finan-cial crisis is still having

negative effects after almost ten years is global productivity growth of just one per cent. This is the number high-lighted by the author of the study Solving the Productivity Puzzle: The role of demand and the promise of digitization, published by McKinsey Global Institute (MGI). This means that productivity growth has shown no significant recovery from its historic low of 0.5 per cent from 2010 to 2014. In comparison: a decade before that, productivity growth still amounted to 2.4 per cent per year. However, there is hope of favourable growth in productivity in future – MGI researchers expect that digiti-zation alone will ideally create an annual increase of 1 to 1.5 per cent.

F R A N K LY S P E A K I N G

Digitization is right at the top of the agenda for many

German companies. How-ever, some 63 % of them feel handicapped by data privacy in implementing new technol-ogies. That is the finding of a representative survey of more than 600 companies on behalf of BITCOM, the German Association for Information Technology, Telecommunica-tions and New Media. Trading companies in particular (80 %) say that data privacy is prob-lematic for them. For 57 % of the industrial sector and 53 % of service providers, data privacy is seen as the highest hurdle. BITCOM President, Achim Berg, therefore advocates precise monitoring of the effects of the new Data Protection Regula-tion and seeking official im-provements where appropriate.

Data privacy sets the bar high

Work 4 days instead of 5

The 40-hour week designed for the industrial age is a

dying model. It is possible that we will all work one day less per week in future. This is one of the forecasts resulting from the International Delphi Study 2050: The Future of Work, conducted by the Bertelsmann Foundation. This assessment method was based on multi-level, systematic questioning of experts – with 298 experts involved worldwide. They also expect that we will carry out a large part of our future work as knowledge nomads: highly mobile workers, able to utilize their knowledge at any time, context-driven, in a diversity of organizational structures.

The University of Pforz heim conducted a qualita-

tive study to find out which concrete terms companies associate with agility. From July to October 2016, 45 managers in German companies were questioned on the topic of agility in the form of guided interviews. It emerged that agility is associated with four concepts. Firstly, it is deemed to mean fast decision making in response to changes. Secondly, adaptability in implementation. Thirdly, focus on customer satisfaction. And last but not least, a certain attitude: manag-ers should communicate with their employees as equals.

Agility – what that means to bosses

AGILITY

The Polish government is criticized for its reform of the jus-tice system. The European Union (EU) recently launched

infringement proceedings against Warsaw. How do the politics of the national conservative government around the autocratic party chairman, Jaroslaw Kaczynski, influence the investment decisions of global companies? Some risk management employees have taken a closer look at the business dealings of Polish subsidiaries since the change in gov-ernment in autumn 2015. Some government decisions have met with criticism from investors – such as increased state spending for redeemable election gifts and partial elimination of Sunday trading. Against all the odds, we can see today that Poland, alongside Czechia, has been the most attractive investment location in Central Eastern Europe for more than a decade. Growth is uninterrupted and, in the second quarter of 2018, will be about five per cent above the previous year. This is the result of high, unchanged private de-mand, as well as increasing public and private investment. The government around the former top banker Mateusz Moraw-iecki is smart enough to avoid spoiling things with Brussels and foreign investors. Investment guarantees further growth and greater prosperity. Both would appear to be essential prerequisites for a not improbable re-election of the Kaczynski party in a year.

RAINER PAULYAs an executive search consultant, Rainer Pauly primarily advises medium-sized enterprises and corporate subsidiaries across all industries. He focuses mainly on Poland and neighbouring countries.

+48 22 437 67 03 rainer.pauly@deininger.pl

OFF TOPOLAND!

Anyone who wants to invest in Central and Eastern Europe is in the right place here,

says Rainer Pauly

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Frankfurt and forty percent by the State of Hesse. The objective is straightforward: business promotion. That’s right, the Messe Frankfurt GmbH is not self-serving – it strives to support business in the city and surrounding areas. According to the latest ifo report, it more than achieves this target. Events at the Messe generate pur-chasing power of € 3.6 billion for Germany, with half, € 1.8 billion, spent in Frankfurt. His father’s question about trade fairs was not ran-dom. Werner Marzin Senior is a trade fair professional, having headed the Munich Messe for many years. He took his son with him from an early age – and that leaves an impression. Marzin Junior completed training as a for-warding agent and graduated in business administration before following in his father’s professional footsteps. His pursuit of practical experience led him to Munich,

TOP STORY

Wolfgang Marzin heads the most successful German trade fair company (Messe).He is based in Frankfurt, but is a global player.

A man of the world with his feet

on the ground

P E T E R LÜ C K E M E I E R

OA N A S Z E K E LY

ecently, his 88-year-old father asked which large trade fair was coming up in Frankfurt. Some-how, that was the wrong question. Obviously, the Messe Frankfurt is based in the city on

the River Main. And it is naturally home to regular major trade fairs, such as the Buch-

messe (Book Fair), Automechanika (auto-motive services) and the IAA (Inter-

national Motor Show). However, Wolfgang Marzin has actually headed a global company for some time, organizing 98 fairs outside Germany last year alone. Messe Frankfurt is represented in 188 coun-tries around the globe. As the manager, he never loses sight of the mission entrusted to him and his colleagues by the owners. Sixty per cent of the company is owned by the City of

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after-tax profits of most recently € 41 million, the second- best result since the company was founded. When you meet Marzin in a restaurant, you experience a man who appreciates life’s pleasures and someone who finds time for more than a passing word with the waiter. One of his predecessors, Dr Horstmar Stauber, who first headed the Messe Frankfurt and later what is now Fraport AG (Frankfurt Airport), once said that trade fairs are actually much more interesting than operating an airport, because trade fairs reflect the economy as a whole. Marzin would agree. The ups and downs of the industries, the structural changes in the real economy are reflected at trade fairs. The beauty show loses interest, but the 3D printer fair takes its place. He and his colleagues do not just stand and watch the perpetual comings and goings with their arms crossed though; they are focused participants. Whenever something happens in the world of business, the Frankfurt team wonders how it might be possible to highlight the new trends with an inno-vative trade fair. Examples of such creativity include Shanghai Intelligent Building Technology and hyper-motion – the digital transformation of logistics, mobility and intelligent traffic systems, presented in Frankfurt. Also new are two motorbike trade fairs in Turkey and Argentina. Beautyworld Saudi-Arabia is a gateway to the largest market in beauty products in the Middle East. The most successful Messe Frankfurt brand worldwide is Automechanika, exported to 15 countries.

Wolfgang Marzin and his colleagues are happy to observe that the trade fair and congress business is booming, despite the

internet, video conferences and other new global forms of communication. ‘The more digitization increases, the more important direct communication, eye contact and a handshake become,’ says Marzin. This trend is accom-modated in Frankfurt with larger congress areas; the new Kap Europa Congress Centre offers space for 2,400 visitors. 155 congresses and conferences took place in Frankfurt last year alone. Congresses are always attended by the bosses, from surgeons to head librarians, and that benefits the local hotels and restaurants – promoting the economy. It is almost self-evident that the Frankfurt Messe’s operative word is service, as the company not only orga-nizes and creates trade fairs and congresses, but also rents out space, e.g. to the German Publishers and Booksellers Association for the Book Fair or the VDA for the IAA (International Motor Show). The location in the heart of the city is easily accessible for all types of transport and offers space for popular events like Holiday on Ice and the International Horse Show around the Christ-mas period. And last but not least, concerts. The historic Festhalle is still one of the most atmospheric venues in Germany, this year with Justin Timberlake, Marius Müller-Westernhagen and Andreas Gabalier in concert.

Sometimes Wolfgang Marzin mingles with visi-tors. A native of Munich, he has become a real Frankfurt fan. A father of three sons, 19, 21 and

23 years old, he is still regularly drawn to his family in the Bavarian state capital. Home is home and he has even been spotted wearing traditional Bavarian Lederhosen – at an event. Nevertheless, he has felt at home in Frankfurt for some time now, living in the Sachsenhausen district. The Head of the Messe values the unreserved friendli-ness in greeting strangers. Of course, that is very relevant for the company he manages, as the Messe has attracted people from all over the globe to visit this city since the year 1240. He likes the players from the world of politics, business and the public sector, many of whom are represented on the supervisory board. When he talks about Frankfurt and his company, there is no mistak-ing the passion in Marzin. For all of his dynamism, he always remains unpretentious and places the mission far above himself. A man of the world with his feet on the ground.

TOP STORY

WOLFGANG MARZIN …… joined the management board of Messe Frankfurt GmbH in February 2010 and, just two months later, was appointed successor to Michael von Zitzewitz, Chairman of the Management Board. Prior to joining, Marzin spent from 2004 to 2009 as Chairman of the Manage-ment Board at Leipzig Messe. He initially trained as a forwarding agent, then graduated in business administration, before starting his career in 1990 as a project manager for foreign trade fairs at the International Trade Fair & Exhibition Service, Munich. Other positons led him to the GHM (Organization of Exhibitions and Trade Fairs for Craft Trades), where he was assigned leadership roles in 2001.

Düsseldorf and Chicago. In 2004, he was appointed Chairman of the Board at the prestigious Leipzig Messe. He has been the boss in Frankfurt since 1 April 2010.The term boss does not really reflect his style, though. Marzin – more of a solid, sporty person with the friendly

and motivational manner of a ski instructor – is a team player. It starts with him correcting himself and quickly turning I into we, and does not simply end with praise for his board colleagues, Detlef Braun and Uwe Behm. It is plain to see that this passionate manager truly enjoys his work in Frankfurt.

You won’t find the top man of the most success-ful trade fair company in Germany repeatedly drawing attention to his own success either.

He prefers understatement, ‘We haven’t made many bad decisions.’ The numbers prove it. Since he joined in 2010, group revenues have increased by about 50 per cent, with

‘ The more digitization increases, the more important direct communication, eye contact and a handshake become.’ WO L F G A N G M A R Z I N

Messe Frankfurt independently organizes some 150 trade fairs per year. Last year, 98 trade fairs were hosted outside Germany – with 52,987 exhibitors and 2,225,258 visitors. International trade fairs are on the rise (back in 2013 there were 70 foreign fairs) and play a major part in the success of the group, which is now represented in 188 countries around the globe.

A few examples:

Automechanika Trade fair for the automotive service industry, exported to 15 countries,

including the US (Atlanta)

BeautyworldCosmetics fair in Jeddah,

Saudi-Arabia

Fitex IndiaFitness and health trade fair in Delhi,

India

LeatherworldTextile fair for the leather industry in Paris,

France

Motocicleta ArgentinaMotorbike fair in Buenos Aires,

Argentina

Source Africa und ATFTextile fair for textiles and shoes in

Cape Town, South Africa

FACTS ABOUT THE MESSE FRANKFURT

The Frankfurt Messe, with 592,127 square metres in the heart of the city on the River Main, also offers rental space for a diversity of event promoters.

Source: Messe Frankfurt GmbH

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3 million

Robots, artificial intelligence (AI), chatbots, cognitive systems – machines are gaining ground

JobsBy 2022 a total of 75 million jobs worldwide could be replaced by new

technologies – and 133 million new jobs could be created at the same time.Source: Weltwirtschaftsforum

75 million

Fear 69 per cent of Germans believe that

AI will eliminate jobs on a massive scale.

Source: Bundesverband Digitale Wirtschaft

69 %

WorkMore than three million robots will operate in factories around the globe by 2020 – human/machine working models will become commonplace. Source: International Federation of Robotics

UtopiaA political movement in London believes that Robot & Co

can facilitate a fully automated luxury communism (FALC): robots should work for our pensions while humans indulge

in indolence.Source: Zeit online

CostGlobal expenditure for cognitive solutions will reach US$ 40 billion by 2020.Source: International Data Corporation

$40 billion

2,8 millionHope

By 2030 the German gross domestic product (GDP) will increase by 11.3% thanks to AI = € 430 billion. Note: The healthcare and automotive sectors will

benefit most from the AI effect.Source: PwC

11.3 %

HUMAN MEETSMACHINE

RecruitmentThe Sgt Star Chatbot conducted 2.8 million job interviews for the US Army over a period of five years.Source: Electronic Frontier Foundation

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The international automobile industry is changing rapidly – and with it, the labour market. How does that impact the HR structure and management of companies in the industry? An interview with Kai Deininger, Managing Partner at EUROSEARCH CONSULTANTS,

and Gajendra Chandel, Chief Human Resources Officer of the Indian automobile manufacturer Tata Motors.

3 QUESTIONS 2 EXPERTS 1 INTERVIEW

IN THE FAST LANE

GAJENDRA CHANDEL | When we analysed our existing structures a few years ago, we came to the realization that Tata Motors would no longer be fit for purpose after 2019. We needed a new strat-egy in order to fulfil our mission – specifically to become one of the top three commercial vehicle manufacturers worldwide and the largest car manufacturer in India. The approach was radical: we reduced our management hierarchy from 13 to 5 levels. That has made us more agile, streamlined decision paths and avoided redundancy. Instead of too many committees and workshops, we now have improvement-by-action projects, with consistent objectives. Change starts at the top; management privileges must be eliminated. First come resistance and pain, then comes growth.

GC | We carried out an assessment programme with our top 500 managers. The main focus was on the ability to adjust, development potential and suitability for specific tasks. The requirements for junior managers are more functional, with technical skills, for example, being particularly important. On the other hand, our assessment of experienced managers focuses on more strategic aspects, such as leadership skills, a strong sense of responsibility, customer orientation, team spirit, integrity, undaunted by competition, and persistent focus on results. Not forgetting skill and will – both are important, but the will must be stronger – as Muhammad Ali once said – to leave the ring as the winner.

GC | In order to drive innovation in an industry that has already experienced a great deal of innovation in the past, where certain areas can only be optimized, we try to attract high potentials from other coun-tries and industries. This ensures a solid balance – also cross-industry benchmarking. A talent pipeline and selection programmes are important in choosing people, finding young talent early on and allowing them to grow with the company. The key is to remain open at all levels. We must repeatedly ask ourselves, ‘How can I present Tata Motors as the preferred employer in the automotive industry?’ Alongside values such as diversity and work-life balance, one example is learning new knowledge together.

KAI DEININGER | Trends like autonomous driving and electromobility are creating enormous pressure to take action. Anyone who wants to focus on the customer of the future will meet with additional competition, such as car sharing and other sectors. The fact that Tesla is one of the most valuable car brands strikingly highlights this disruptive moment. Companies and managers face equal difficulties in this biotope: which trend will be a step ahead? The demand for more efficient and energy-saving mobility in Asia, especially India and China, also hugely increases the pressure. Strategically considered measures are needed, rather than succumbing to the lure of additional units.

KD | In my view, research and development, business analytics and marketing strategy are becoming more important in being able to utilize the flood of data from customer centricity to develop products and business models. In times when modular construction methods already offer manufacturers enormous potential, packaging – i.e. brand – and revenue models become more important. Decisive, however, will be ‘reading’ customer needs, dynamic continuous improvement and management competence. These factors alone determine customer satisfaction and thereby economic success.

KD | On the one hand, the production side of the automotive industry is set up internationally, primarily based on the manufacturer and supplier structure. Here, Germany, or rather the art of German engineering, is in high demand. Asia and the US are technology drivers – Brazil, Russia, India, China and Mexico are still relevant production markets. On the other hand, the sales side is set up in regional markets, which vary in strength, and has itself become a pawn in different disruptive business models. I see Asia, followed by Europe, North and South America as exciting regions.

Just how dynamic is the market for specialists and managers in the automotive industry worldwide?

Which profiles and skills are particularly in demand now and in the future?

Which region is promising in the search for professionals – and how can a company retain them?

SPOTLIGHT

KAI DEININGERManaging Partner at EUROSEARCH CONSULTANTS since 2008. He start-ed his career at Compaq Computer Corp. in 1995, initially in Houston and later Singapore and Munich. He joined Jobline International in 2000 and moved to Monster mid-2001, where he was appointed General Manager for activities in the German-speaking region in 2002. Mid-2004 Kai Deininger was appointed Manager of Marketing, Public Affairs, Communication and Alliances for Europe. Since 2007 he has managed projects for international companies, such as Hewlett Packard EMEA, MFG.com, International SOS, Experteer and LinkedIn.

+49 69 244 322 10 kai.deininger@eurosearch.de www.eurosearch.de

GAJENDRA CHANDEL …Gajendra Chandel was appointed Chief Human Resources Officer of the Indian automobile manufacturer Tata Motors Limited in April 2014. Prior to that, he was President and Group Head of Human Resources of Tata AutoComp Systems Limited (TACO), which he initially joined as Executive Vice Presi-dent. Before joining TACO in 2005, Mr Chandel worked for Siemens – in India, Germany and the US.

+91 22 666 572 27 gajendra.chandel@tatamotors.com

The complete interview with Gajendra Chandel is available at www.deininger.de

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DONATIONSIf you would like to support the work of the Market Economy Foundation (Stiftung Marktwirtschaft), you can donate to the following account. Donati-on receipts are available on request.Stiftung Marktwirtschaft Deutsche Bank IBAN: DE08 1007 0000 0555 5545 00 BIC: DEUTDEBBXXXMore information is available at www.stiftung-marktwirtschaft.de

Prof. Dr. Michael EilfortProfessor Eilfort has been an Honorary Professor at the University of Tübingen since 2005, and Director of the Market Economy Foundation in Berlin since 2004. From 2000 to 2004, Professor Eilfort was Chief of Staff to Friedrich Merz, MP; initially in his function as Chair-man of the CDU/CSU parliamentary group until 2002, then as the Deputy Union Group Leader in the field of Economy, Labour, SMEs, Finance and Budget. Prior to that, from 1996 to 2000, he was Division Head of the Discourse/Policy Advice/Operational Schedule of the State Government in the Ministry of State, Baden-Württemberg. From 1994 to 1996, he was a parliamentary consultant in the Landtag (State Parliament) of Baden-Württemberg, following his time as an academic aide in the German Bundestag (Federal Parliament) from 1992 to 1993.

‘ WE ARE FACING THE EMIGRATION OF QUALIFIED YOUNG PEOPLE’

6 QUESTIONS FOR Prof Dr Michael Eilfort, Director of the Market Economy Foundation.

I don’t think so. Radical economic developments always mean change. Some jobs are no longer necessary, others change. However, as has always been the case, these new developments will also ultimately lead to higher growth and more jobs. The horror scenarios that predict the loss of millions of jobs calculate the high potential losses, but can’t logically register the potential or benefits still ahead. More optimism would do us good.

Another major topic for the future is digitization. Should we be afraid of that?

The energy transition was certainly not a model of predictability and legal certainty – and other countries are not following suit. Nevertheless, we are talking about spilled milk: there is no longer a consensus for nuclear energy in Germany. All future steps, however, must place greater focus on the reliability and affordability of energy supply.

You also criticize the withdrawal from nuclear energy as having been too hasty.

We inform the public through articles and events, ranging from the federal-state relation-ship and the defence of cash to zero interest policies and the fiscal consequences of unchecked immigration. And very importantly, we lobby for a good cause, specifically a sustainable social market economy.

What exactly does the Market Economy Foundation do to communicate its view of things to the public?

… and everyone under fifty is on the losers’ side, because they are supposed to finance the pensions, but expect less for themselves. Politicians take the easy way: the majority of the electorate is already over 53 and most of them are more interested in security, safeguards and pensions than in innovation and the future. Over the course of a lifetime, most people’s attitudes change and we are living in a rapidly aging country. One can certainly understand the individual people, but responsible politics should mean more than the sum of comfort and a fixation on the present.

The older pensioners benefit …

No, what we are really facing is the increasing emigration of qualified young people, if the financial burden becomes too great for them. Pensioners today have it better than ever. Of course, one must prevent old-age poverty by 2030, but I don’t see it as a mass phenom-enon. We have a completely different problem: children are much more likely to face poverty – and it is highly probable that anyone who suffers hardship as a child, will not be well off in old age.

Are we facing nationwide old-age poverty in Germany from 2030?

The German government is oblivious to the future. For ten years now, no real reform, neither tax relief for citizens and companies nor important investment – instead, sub-stantial benefits, especially the kind that will only be paid for later. By that, I mean in particular the pension gifts of the grand coalition. They will burden the future premium and tax payers.

The Market Economy Foundation (Stiftung Marktwirtschaft) is dissatisfied with many political developments, ranging from the tax burden to excessive public spending. What bothers you most at the moment?

FOCUS

Photo: Stiftung Marktw

irtschaft

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prerequisite to a customer spending money on something that he doesn’t yet fully know.’ Streibich sees communication as addressing the public too. He finds it important to avoid focusing on technical terms, explaining ben-efits instead, with positive examples. ‘Auton-omous driving’ sounds far too technical to him, for example, far too cold. He would prefer ‘safer driving’, ‘after all, it really helps to prevent accidents.’

Explaining each innovation through its benefits and the opportunity/risk ratio is some-thing Streibich holds dear, as technical progress has to be under-stood and wanted emotionally in or-der to be accepted. Internal communication, on the other hand, is above all about mas-tering different roles, according to Streibich. In implementing company strategy, a good

BEST PRACTICE

Karl-Heinz Streibich, the longstanding CEO of Software AG, believes in technological progress through digitization, communication and building confidence.

P E T E R LÜ C K E M E I E R

‘ YOU JUST HAVE TO BE AUTHENTIC’

etirement suits him after 15 years at the head of Software AG. Above all, the burden of relentless quarterly stress has been lifted from his shoulders,

says Karl-Heinz Streibich (65), as well as re-

sponsibility for almost 5,000 employees. But what is retirement anyway? His honorary role as one of the two presidents of acatech, the National Academy of Science and Engineering, is practically a part-time job. In addition, he is a member of the

super visory boards of Deutsche Telekom, Siemens Healthineers and supervisory board chairman of Dürr. Nor can this manager exclude the possibility of ‘doing something entrepreneurial’ again one day – after all, that is what he has done all of his life. That is literally true, even as a boy Streibich helped out in his parents’ hotel and restau-rant in Rheinmünster near Baden-Baden. Ideas to increase revenues came to him at

is within the System’, this native of Baden first listened intently to his customers and the workforce, looked for solution models that would suit the system, then developed an integrative strategy, which he im-plemented resolutely. ‘You have to recognize the core theme and fol-low it resolutely, even amid the greatest chaos; and communi-cate the strategy well enough and long enough until even the most resistant naysayers to progress come over to your side.’ As an honours graduate in communi-cations engineering, he sees proper communica-tion, ‘in the sense of di-alogue, not monologue’, as a decisive management quality. That applies both internally and externally. He is confident in saying, ‘I learned early on to behave and live in a way that people, also customers, could place their trust in me. After all, that is also

an early age, such as moving away from small bottles to serve Coca-Cola in glasses poured from a large bottle, with the added touch of ice and a slice of lemon. The family restaurant not only helped him to develop business acumen early on, it also taught him something even more important – interact-ing with people.

From restructuring to success

Insight into human nature proved very use-ful at Software AG in Darmstadt from 2003 through to his retirement in 2018, both in

terms of employees and customers. As a graduate engineer, following positions at ITT, debis and T-Systems, he took over man-agement in Darmstadt and faced the chal-lenge of restructuring. Streibich’s leadership quickly had the company back on the road to success. By the time he reached statutory retirement age, revenues had increased to € 879 million, with net earnings of € 140.3 million. True to his motto, ‘The Solution

‘You have to recognize the core theme and follow it resolutely.’

Karl-Heinz Streibich… was CEO of Software AG for 15 years, joining in 2003. Since May 2018, he is President of acatech and – in addition to other supervisory board positions – a member of the supervisory board of Deutsche Telekom since 2013. He started his career as a graduate engineer in 1981 as Chairman Computerization Team at the Dow Chemical Company; following other positions, he joined debis Systemhaus GmbH in 1992.

Illustrations: iStock

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TOP LESS

manager must demonstrate a leadership style aligned to each different phase. As a result, during the brief restructuring phase at Soft-ware AG, he was like a communicative dicta-tor; during the consolidation and initial suc-cesses that followed, more of a sports coach, and then in expanding the chosen successful strategy, more of a conductor and mediator. The challenge lies, in his view, in aligning the role to the relevant phase at the right time.

Forget about status symbols

Streibich mentions another aspect of the right leadership style only in passing, when he says that he no longer has to drive from Frankfurt to Darmstadt and back every day. Didn’t he have a driver? No, when he took

over management at Software in times of crisis, a boss with a chauffeur would have sent the wrong signals. Afterwards, it stayed that way. You don’t need a leadership seminar to teach you about such decisions, he says, ‘you just have to be authentic; behave like a reasonable, decent person would in that sit-uation. ’ That includes forgetting about status symbols, especially when they are inappro-priate in the given circumstances. Would the father of four daughters advise a young

BEST PRACTICE

person to pursue a career in the computer industry? Absolutely, Streibich says that he not only finds the industry exciting, but also future-proof, ‘Eighty per cent of technical progress will be created in the field of dig-itization.’

AI and new professions

He expects progress to accelerate increas-ingly, with artificial intelligence playing an ever greater role, and the creation of new professions, such as the data modeller. He also has high hopes for bioscience and is ir-ritated that public discussion is limited to genetically modified corn, rather than appre-ciating the incredible possibilities in fighting disease, for example.

As a manager at the top of his profession and someone who also works and travels a great deal in his retirement, he has always kept an eye on his own health. Not much alcohol, moderation in food, never smoking and lots of running. A slim man, he wears a fitness tracker on his wrist, which counts his steps every day; should be 10,000 per day. Today it reads a good 8,000, but there are still a few hours to go. Karl-Heinz Streibich says goodbye and hops onto his bicycle.

S N I P P E T

A former federal minister throws a summer party every year. Many important people attend, company bosses, senior politicians and also some fine ladies with the rather undefined job of ‘society ladies’. Five years ago, no man would have dared to turn up without a tie. That is different today.

Men topped with a tie are now very much in the minority.

And that doesn’t just apply to stylish summer parties. From the opera to the office, and of course the after work party, open collars rule.

Only bankers, lawyers and executive search consultants adhere resolutely to wearing ties. At least, whenever they are visiting a customer.A tie is therefore so much more than the, currently fashionable,

7.2-centimetre-wide strip of material. It is a symbol of politeness and socially sophisticated behaviour.

And what about the former minister at his own summer party? Casual or formal? Topless or not? The man elegantly avoids the whole

issue. He has always favoured a bow tie.

Your Peter Lückemeier

DIGITIZATION CHALLENGE FOR GERMANY

The most pressing subject in creating the basis for digitization

is the infrastructure and broadband expansion of the internet in many regions and the relevant upgrade away from copper wiring in the major cities in Germany. The German government has set up a funding programme for this purpose, but the process is so overloaded with bureaucracy that hardly any funding is released. It is now hoped that a digital council will improve matters. The global market is dominated by American companies like Amazon, Google, Facebook and Microsoft. The only German player one can name here is SAP. The need to catch up in the German market is enormous and there is a high-pressure search for digitization experts. However, it is precisely in this segment that potential employees don’t apply – they have to be found, contacted and persuaded. It therefore pays to engage external executive search specialists with the right knowhow and network. Setting up digital departments is certainly tricky, but it is in full swing. The role of Chief Digital Officer (CDO), who takes on these tasks, has won recognition and is developing. Change actually happens more quickly if the knowledge is not transferred to experts, technicians and managers alone, but where the strategy is clearly defined and communicated to all employees. ‘80% of technical progress will be created in the field

of digitization.’

JÖRG ALBOLDA longstanding IT specialist, who knows the tight market and the need for specialists across all industries, adding to the expertise of DEININGER CONSULTING since 2017.

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4 / REACH YOUR DESTINATION SAFELY Female managers face different dangers when travelling than men – above all in the evening hours. Regardless of the country, get confirmation that a taxi service is officially certified – from your hotel, for example. Even better : organize a pick-up service; that is the safest option. In the US,

for instance, you can make use of the courtesy parking service when renting a car. Make you travel management aware of gender differenc-es in travel – after all, companies have a statutory duty of care to their male and female employees alike.

3 / INFLIGHT FITNESS As a general rule, no more than

two glasses of alcohol, as the cabin pressure rapidly increases

the effects – not the ideal prepa-ration for the business meeting ahead. Take at least one bottle

of water, as the body dehydrates quickly at altitudes of 10,000 metres and causes organs to contract. To ensure that you

feel fit throughout, avoid foods that make you feel bloated, such as salad, legumes and cheese during your flight – and pack a few fennel,

aniseed and caraway teabags. Pop some hand cream in your bag as your hands can quickly feel dry.

1 / BOOKING THE RIGHT HOTELChoose a hotel in a central location with high safety standards. As the

proportion of women travelling on business worldwide is growing continually, an increasing number of hotels now cater to the specific

needs of female travellers (such as the Hyatt Group) and acquire the appropriate certification. They offer, for example, specially furnished

rooms for women or even a ladies floor, only accessible to female hotel guests. In the US there are already numerous business hotels for

women only. The German website Women Sensitive Hotels (www.womensensitivehotels.com) showcases hotels that

offer specific services for this target audience. In order to be

listed, hotels must fulfil a special catalogue of criteria. Professional

advice is particularly advisable when choosing accommodation in unfamiliar cultures - and not only regarding the specific cus-

toms and behavioural norms.

2 / COMFORTABLE TRAVELWomen generally feel the cold more than men. Travelling in a stylish business outfit, especially on a long-haul flight, you need to protect yourself from catching a cold. In all aircraft, certain rows are draughtier than others. Tip: a light pashmina scarf, which provides warmth, looks good and easily fits in your hand luggage – and is an added bonus in a cool air-conditioned conference room. Inciden-tally, when it comes to your outfit: viscose trousers with a seam are comfortable for the journey, while looking smart. Avoid dark circles

under your eyes at the meeting after an air marathon: when the lights are dimmed, use a fleece face mask for about 20 minutes. A 400-milligram sachet of magnesium plus one valerian tablet will help you to sleep. You can also provide some back relief by placing a pillow under your legs while lying down.

Photos: iStock

4TIPS FOR LADIES TRAVELLING

ON BUSINESS

We would like to thank Claudia Crisolli, long-haul purser at Lufthansa, for these useful travel tips.

‘I have a particular affinity with Copenhagen as my wife lived there for a long time. One spectacular

experience was a visit to the “best restaurant in the world”, because noma is exceptional in every way.

From the outside, it looks inconspicuous, as does the corridor leading inside – but then suddenly

the doors open to present a cheering kitchen team. The restaurant

evening actually becomes an event, combined with exquisite seasonal

cuisine, creating a unique ‘woodland’ spice, for example, by applying

the Sous Vide method to local birch.’

M A RC O S C H M I DT,

M A N AG I N G PA RT N E R

D E I N I N G E R C O N S U LT I N G

T R E N D S C O U T D E I N I N G E R ’ S LO U N G E

NOMA KOPENHAGENRefshalevej 961401 København K, Denmark

+45 32 96 32 97 noma@noma.dk

www.noma.dk

Phot

o: no

ma/

Ditt

e Isa

ger

NOMA COPENHAGEN

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FITNESSSINGAPORE

SHANGHAI

BEIJING

DELHI

WARSAW

BERLIN

LONDON

DÜSSELDORF

LOS ANGELES

BANGALORE

‘There is actually a sport boom in China, but unfortunately many of the fitness studios are not optimally equipped. So my tip is the Jing An Shangri-La Hotel in the centre of Shanghai, an ideal retreat for combining relaxation and serious training. In the elegantly furnished rooms, you can enjoy swimming, a classic workout, the spa area and a massage. After that you really should try the best steakhouse, The 1515 West, Chophouse & Bar, on the fourth floor. You will find the best 45-day dry aged beef, combined with excellent wines from around the globe.’

SHANGHAILodowing InsiunDEININGER Management Consulting Co., Ltd.Room 1205, 21st Century Tower, 210 Century Avenue, Pudong New AreaShanghai 200120, China +86 21 610 165 78

lodowing.insiun@deininger.cn

JING AN SHANGRI-LA HOTEL 1218 Middle Yan'an Road, Jing An Kerry Centre, West Nanjing Road, Shanghai 200040, ChinaTelephone: +86 21 220 388 88, shanghaijingan@shangri-la.com

‘I am happy to recommend Reebok CrossFit in Gurgaon, as the CrossFit concept is not limited to strengthening individual muscle groups – like jogging, for example – but actually promotes all-round power, endurance, agility, speed and coordination. These are strengths that I need as a manager in my professional life too. In India, cricket is naturally the focal point of sporting interest. However, the number of trendy gyms is continuously increasing in the major cities – and the range is very diverse.’

GURGAON / DELHIManish VargheseDEININGER Management Consultants Pvt. LtdPrivate studio 29/30/31, 6th floor,RMZ Infinity, Plot no. 15, Udyog Vihar phase – IVGurugram - 122015, Haryana, India +91 124 662 09 70

manish.varghese@deininger.de

REEBOK CROSSFITB11/1, Ashoka Crescent Marg, DLF Phase 1, Gurgaon. IndiaTelephone: +91 989 919 31 94, hello@reebokcrossfitgurgaon.inwww.reebokcrossfitgurgaon.in

3 LOCATIONS, 3 PERSONAL TIPS FROM LOCAL DEININGER CONSULTANTS

LOUNGES FOR MANAGERS

Photo: iStock

Photo: River View, Warsaw

Photo: Shangri-La Hotel

‘Warsaw, economic hub and capital city of Poland, can some-times be quite taxing for stressed managers. You can wind down at the RiverView Wellness Centre in the heart of the city, test your limits on the treadmill and lifting weights, or relax with yoga. The view over the Vistula River and the Warsaw skyline will take your breath away – if you have any left after your workout.’

WARSAWMoritz HerfertDEININGER Consulting Sp. z o.o.ul. Twarda 1800-105 Warsaw, Poland +48 22 437 67 06

moritz.herfert@deininger.pl

RIVERVIEW WELLNESS CENTREInterContinental Warszawa, ul. Emilii Plater 4900-125 Warsaw, PolandTelephone: +48 22 328 86 40, www.riverview.com.pl

MUNICH

FRANKFURT / MAIN

DEININGER INTERNATIONAL

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TAJ MAHALJEWEL OF INDIA

On the banks of the Yamuna River in Agra, some 200 kilo-

metres southeast of the Indian capital Delhi, lies the famous

Taj Mahal, a mausoleum more than 300 years old. In 1983, this

jewel of Muslim art in India was listed as a UNESCO World

Heritage Site and is seen as the Symbol of this aspirational country – which, after half a

century of independence, is now developing to become an

economic superpower. This former British colony has

shown stable economic growth over the last 20 years, although over coming extreme poverty does still present a major chal-lenge. India is now among the

top global players in certain areas, such as pharma-ceuticals, IT, aeronautics and biotechnology. Its booming

cities include Delhi, Mumbai and Bangalore.