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Happy Leading - Opportunities and Risks of Digitalization in Employee Leadership

Digitalization impacts leadership in various ways, from communication challenges to data collection benefits. Establishing clear rules, involving employees, and ensuring data security are vital for effective leadership in the digital age. Embracing these changes can lead to significant advantages for both employees and organizations.

Happy Leading - Opportunities and Risks of Digitalization in Employee Leadership

"Digitalization prevents good leadership." "Digitalization improves and facilitates leadership."

These two statements encounter me during visits to companies, conversations with employees, or workshops with executives time and time again. Digitalization is currently the most controversially discussed topic and naturally also affects the leadership of employees. Whether it is about the sick leave of employees or the recording of movement data in production processes. In many areas, it creates uncertainty, conflicts, fears, and discomfort. Employees or even executives are uncertain, and in the end, this issue is not addressed and rather ignored for the time being. Someone will find a solution. No, no one will find a solution for your leadership, and no, no one will turn off the internet anytime soon. So, it is high time to deal with it. What has changed so far and what can you do?

1. Communication

The most significant change has occurred in communication. Nowadays, much is done in writing, the amount of communication has grown exponentially, there are countless communication tools, and the speed is incomparable to before. 30 years ago, we only had the telephone, letters, or face-to-face communication as communication mediums. Clear rules for these communication channels did not exist, as the room for interpretation was fortunately limited due to much personal contact. Writing a letter took more time, and therefore, the content was formulated much more precisely. In case of uncertainties, one would pick up the phone since no one necessarily wanted to wait a week for a response. This is, of course, completely different today. The variety causes confusion, fuels conflicts, and requires good leadership. In these situations, digital tools can help us. But what does good and clear leadership look like? In any case, it must be consistently lived and demanded. Where do most problems arise?
  • Emails are used to conduct discussions, and conflicts arise from misinterpretations. To either cover oneself or escalate the situation, additional persons are included in the distribution list. The flood of emails and the time spent on them increase, and de-escalation does not occur.
  • It is easier and faster to report sick leave via WhatsApp. The number of sick leave notifications has significantly increased.
  • Information is lost or not absorbed by the recipient since the volume of information and information media has increased. Nowadays, companies have classic emailing, notices, employee newsletters, a blog, an internal social media solution, and more. It is confusing to keep track of where the information is coming from and what is important. Executives sometimes rely on these media and may then provide inadequate information.
However, digitalization also brings advantages in the field of communication. For example:
  • Complex information and facts can be sent to a relevant person early on
  • With this information, one can prepare in advance for a meeting
  • We are much more flexible in terms of location and time (e.g., home office)
  • Information can be centrally stored (e.g., in a cloud solution) and then accessed decentrally, reducing travel distances and time spent
  • Through video conferencing, communication can be location-independent, but personal. Only information is sent via email. Queries, discussions, matters requiring clarification are discussed over the phone. To cover oneself, a summary email can be written afterward
These advantages are immense, and therefore, weaknesses and risks should be minimized through clear and structured leadership. Therefore, establish clear communication rules and, if in doubt, reduce various communication channels. An example of this could be clear email rules:
  • In CC emails, the sender must assume that they will not be read
  • An email is only sent directly to one person if the content is directed to them
  • You can, of course, establish and implement further rules specific to your company.
Similarly, I would also establish rules for other topics together with the employees. For example, no more sick leave notifications via WhatsApp, but only in person. On the one hand, this raises the threshold again, but on the other hand, I also want to speak with my employees and know how they are doing and if I can do something for them. This is simply not something one does via WhatsApp or email. Emails and similar should also not replace a meeting structure. To sustainably advance a department or a company, personal contact is and remains indispensable.

2. Data Collection

Data collection is probably the most spectacular change in today's world. "No big business without big data." Thus, we can also collect more and more data about our employees. Through sensors in clothing, for example, we can collect movement data in production or logistics. These data can improve walking routes, identify where the best and most efficient rest areas would be, and understand why one employee may work more economically or healthily than another. The possibilities for data collection and analysis are endless. No top team in football leagues or other top athletes forego such instruments to improve their performance. However, the danger lies in data security and also in the acceptance of employees. Works councils will raise concerns, and employees may feel spied on. Therefore, these changes must offer an advantage for the employee themselves and not just for profitability. Then there will be acceptance. The possibilities and advantages will be immense. Then digital data can become an efficient leadership tool. Of course, it is essential to be able to use these double-edged values. If you only show your employees how slow they are, it may not necessarily help them. However, if you can use comparative values from other departments or shifts and create a positive competition from it, then it can be a motivating tool. Consider the following factors: 1. Clearly understand the benefits and goals you are pursuing. 2. Discuss the topic extensively with your employees. Take their fears seriously and involve them in the process. 3. Ensure maximum security. If the data lands with third parties, the whole success is at stake!

3. Transparency on the Web

Through rating portals, our work is becoming increasingly transparent. Kununu, Google, or industry-specific rating portals like Jameda give us more and more insight into various companies and, of course, their management and leadership philosophy. Dissatisfied employees can also vent their frustrations through social media. Personally, I find this very good. Because we leaders must question ourselves and strive to improve. If, for example, we unjustly and inhumanely dismiss an employee, this can quickly cause a stir. Your reputation can quickly suffer, and you may lose potential applicants or customers. Conversely, this transparency can also bring you these applicants and customers if you are an outstanding employer and know how to use these media.

Conclusion

The possibilities are diverse. Even in the area of onboarding and further training of new or experienced employees, you can take advantage of the benefits of digitalization. New digital tools for feedback can also be quickly established. However, without transparency, clear rules, the involvement of your employees, and consistent leadership, you will fail. You should not be afraid, and you should discover and utilize the opportunities. Then your employees and ultimately you will benefit from it. Due to the increasing transparency on the web, it would not hurt to deal with it as soon as possible.

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