Ralph Goldschmidt in an Interview on the Topic of "Work 4.0"
Speakers Excellence: Mr. Goldschmidt, I did not have you on my radar as a "digitalization expert," or as a specialist in agile management methods such as Scrum, Kanban, Design Thinking, etc. What motivated you to develop a lecture on the topic of Work 4.0?Ralph Goldschmidt: You are right. I would not consider myself an expert in digitalization – when it comes to introducing new operating systems such as Holacracy or Sociocracy in organizations. My approach is different. It is born out of practice. Over the past two years, more and more entrepreneurs, board members, and managing directors have repeatedly asked me a question. It was something like: "Mr. Goldschmidt, do you have an idea of how we can manage to convey all the necessary, sometimes uncomfortable changes to our executives and employees in a way that they actively shape the (digital) transformation, tackle it courageously, and feel co-responsible for it, instead of hoping that 'things won't turn out as bad as they seem'?" This is indeed the crucial question. Because the answer to it determines how companies, how employees deal with the topic of digitalization and the resulting changes and actively shape them. I have some very helpful answers to these questions, and from these answers, my new lecture has emerged.
Speakers Excellence: What does Work 4.0 mean to you? In your opinion, what is the core of tomorrow's work?Ralph Goldschmidt: For me, it is about how companies manage to face or shape the "VUCA world." In a world that is increasingly characterized by volatility, uncertainty, complexity, and ambiguity. The pace and dynamics in the markets are enormous, the product life cycles are getting shorter, everything is highly interconnected. Risks are becoming less predictable for decision-makers, their probabilities increasingly incalculable, not to mention the unforeseen interactions that can occur. In this uncertain environment, companies must find their very own way. And it is not always the same – not always straight or predetermined. It takes courage to walk this path and courageous employees at all levels – especially in top management – who overcome their own resistances and fears.
Speakers Excellence: What exactly does the work of tomorrow do to individual employees – from the executive to the assembly line worker?Ralph Goldschmidt: Above all my lectures hovers my credo: "Only when you are well, can you give your best to the world." And the experience I have in many companies is that most people are feeling less well with the increasing dynamics and complexity of the "VUCA world." They long for security and predictability, which is hardly available.
Upcoming changes often trigger fears and resistances. The headline above the interview is not by chance. Often, the speed of change is perceived as higher than one's own speed of learning and adaptation. More and more people feel like they are falling behind. Constant pressure, constant rush. We always have to do more and faster, and understand less. And what do we do then? We resort to behaviors that were once successful, promising a sense of security, but are counterproductive today. They no longer lead to the desired outcome.
Speakers Excellence: Mr. Goldschmidt, you say that it is important to make individual employees "excited about change." How can this be achieved?Ralph Goldschmidt: Most companies are still organized as they were 100 years ago, namely very hierarchically. Following the motto: "Thinking happens at the top, execution at the bottom!" However, in a complex environment, this no longer works. Reporting lines converge in a linear pyramid, leading to bottlenecks at the top. Decisions are then made hastily, delayed, or even completely postponed. Additionally, leaders increasingly have to make decisions on matters about which they have less knowledge, as competencies are increasingly held by specialists rather than bosses. I recently had a brief conversation with an apprentice who told me: "Why should I ask my boss when I know someone who knows." That summed it up wonderfully.
Hierarchies cannot handle complexity. How could they? How can a "decision-maker" possess all the knowledge to make the "right" decision? Therefore, competencies, responsibilities, and decisions need to be delegated to employees. However, not every employee can or wants to immediately or at the push of a button follow this path of self-organization and self-responsibility. Resistance is not the problem. My experience is quite clear: Where there is no resistance, there is no change. Real, genuine change is inconceivable without resistance and fear. The challenge lies in how companies deal with it. Just appealing to see changes as opportunities is not enough. Because fear is subjective. And it is entirely irrelevant whether it is "justified" or not. It is there in that moment and creates different realities for each employee – based on their personal perspective. Each employee must individually and for themselves recognize that the upcoming change does not pose a personal threat. Only then is it possible for them to see the opportunities of the changes. It is an important personal step to acknowledge one's own resistance, one's own fear – and ideally even talk about it – and ultimately accept it. Only then is the path clear for something new.
Speakers Excellence: A tip in conclusion: What can companies do now? Where should they start today? And how can your lectures accompany companies on this journey?Ralph Goldschmidt: In the coming years, companies and their employees face a challenging balancing act. They must adapt to an increasingly complex and turbulent environment faster. Both companies and employees. But they also need to develop different concepts in the future to operate successfully in the "agile mindsets."
Leaders must bid farewell to old terminologies and actions based on the motto "Command and Control." They must let go, and this is not always easy. They must let go in the belief that their employees will take responsibility. And employees must embrace this new role. Depending on age, leaders and employees have been socialized in the company for 10, 20, 30 years in a way that executives make decisions and take responsibility, and employees implement what was decided at the top. This usually worked quite well. And now – without acute pressure – should people suddenly behave completely differently? It's not that simple. Unfortunately, in many companies I come across, the old hierarchical thinking has led to the development of a severe culture of mistrust. This needs to be transformed into a culture of trust. Because trust reduces complexity, as sociologist Niklas Luhmann aptly summarized some years ago. It requires a new understanding of leadership. Of culture.
This does not mean that leadership is obsolete. But it does mean that it must redefine itself. This new type of leadership must involve employees in a way that can be explained. It must define with employees how they all want to shape this path and then step back when it comes to implementing the decisions made. A real cultural change takes time, about three to five years. And it will only succeed if top management truly wants the change, leads by example, and remains committed, instead of – as I unfortunately often experience – lacking the required level of personal willingness to change and secretly thinking: "Hey, I only have 7 years left until retirement. I don't need to go through this. Let others take this path. It's enough for me."
My lectures should be an impulse and encourage companies to embark on this path together, as a "kick-off." And being courageous is not about having no fear, but about facing one's fears and embarking on the journey despite them. With a lot of self-confidence and trust in oneself and one's environment, knowing that this path of change also means actively shaping it. And realizing that it is more pleasant to change oneself than to be changed. I aim to inspire this new form of shaping the future. And so far, it's working pretty well (laughs).