Arnold Weissman: "Managing culture is trying to nail a pudding to the wall"
An interview with Prof. Arnold Weissman, conducted by Urs Prantl, SME mentor and partner of Focus on Future. Arnold Weissman speaks on Monday evening, January 14, 2019 at Focus on Future in Baden about digital leadership and the art of leading in the digital transformation.

At the heart of Arnold Weissman's presentation is the observation that, firstly, digitization affects all companies, and secondly, that it has far more to do with leadership than with technology. This requires an understanding of leadership and practical leadership that will have to reinvent itself over long distances. Arnold Weissman explains why this is so and what this leadership could look like in the following interview.
Digitization is mainly seen as a technological challenge. What role does leadership play here?
Digitization will radically change the economy and society. Knowledge is available everywhere, technology enables radically changed business models. Times of major change need strong leaders who accompany people through these changes, which can also be associated with considerable pain. The greater the upheaval, the more important strong value-based leadership becomes. Understood in this way, leadership is right at the heart of digital transformation.
When we talk about digital leadership. What does leadership mean to you, and what is digital about it?
To me, leading, or leadership, means "lifting others up," enabling people to reach a higher level. Leadership means being "in resonance" with people. In a digitalized world, where people work when, where and with whom they want, the "old" control is lost and must be replaced by a culture of trust. Trust is the central prerequisite for being able to manage the complexity created by digitization.
Change and leadership are nothing new. Why should digital transformation require a different (new) leadership?
Probably the oldest book in the world is the Chinese wisdom book I Ching, the Book of Changes. Heraclitus, the pre-Socratics, spoke of Panta Rhei. Everything flows, everything is in motion, everything changes. Change is certainly not a privilege of our time. What digitization has changed, however, is the speed of change. In the world of Industry 1.0 to 3.0, systems could be mastered, traditional hierarchies were suitable organizational patterns. In the networked, virtual, digital world, however, these systems are becoming more and more superfluous, even counterproductive. So we definitely need new leadership if we want to successfully shape the digital transformation.
How must leadership be practiced in a digital company and how does it differ from conventional leadership?
When framework conditions change ever more rapidly, systems lose stability. Decisions have to be made under high uncertainty. And, they have to be made quickly. This requires networked, self-learning, agile structures in which managers behave like entrepreneurs in the workplace. They must take responsibility and carry this culture of delegating responsibility throughout the organization.
What do entrepreneurs and managers in SMEs have to change in their leadership behavior in order to successfully shape the digital transformation?
Basically, it tends to be easier for entrepreneurs in SMEs, because they are naturally much faster and more agile than the large corporations with their bureaucracies, simply because of their size and personal proximity. There, the motto is "Teaching Elephants to Dance!" In my view, SMEs have every chance of mastering the digital transformation, of shaping it, if they reflect on their natural strengths. More than ever, in the digital world, it is not the big ones who win against the small ones, but the fast ones against the slow ones!
What are the particular challenges in owner-managed SMEs when it comes to leadership in the digital transformation?
Some owners still see themselves as patrons, where all decisions are made. After all, the owner also bears the financial, entrepreneurial risk. But if owners don't understand how to delegate responsibility, they have the same problems as large companies.
What role do the owners themselves play in the digital transformation of their companies?
They need to be at the forefront of change and make digital readiness a top priority. And they must accept that they need support for this, both internally and externally. For many, digital transformation will be the biggest change in their company's history. Banks, insurance companies, wholesalers and retailers, suppliers and even IT and tech companies. They all face the task of having to transform their business model and their company to make it fit for the future. In some areas, people are already talking about the "Amazonization" of markets. Owners need the courage to pursue their own transformation - and, as "first movers," they must strengthen their own employees, take them along, and accompany them.
What are the main mistakes you see in practice when the digital transformation doesn't really work out?
Many people make the mistake of viewing digital transformation solely as a technological challenge. But it is above all a cultural challenge. Even if the strategy and business plans are in place, implementation is by no means assured. As Peter Drucker says so well: "Culture eats strategy for breakfast. Digital transformation is more of a cultural challenge than a technological one. And now comes the problem: Managing culture is like trying to nail a pudding to the wall! For traditionally minded managers, this is of course a particular challenge, to accept that culture is not only so important, but also that it can only be shaped and changed by leading by example. And this takes time - despite all the speed of change. A really difficult challenge for impatient managers.
Finally, can you tell us a few keywords about your presentation on January 14, 2019 in Baden?
My aim is to show what changes are (likely) to come our way and how we can best learn to deal with them. We will talk about how we really put the customer at the center (Customer Centricity), how we need to adapt our business models, what this means for our organizations - and how we manage to bring the people who work in our companies along on this journey.
Event Note
Arnold Weissman will be speaking on Digital Leadership and the Art of Leading in Digital Transformation on Monday evening, January 14, 2019 at Focus on Future in Baden. More info and registration at https://www.focus-on-future.ch/veranstaltungen/digital-leadership/
About Arnold Weissman
Prof. Dr. Arnold Weissman founded the renowned consulting and training company the WeissmanGroup in 1987, which was awarded the "TOP CONSULTANT" quality seal in 2017 for its high level of expertise and consulting management for medium-sized businesses. The WeissmanGroup is internationally positioned, with offices in Nuremberg, Innsbruck, Zurich and Lana. Prof. Dr. Arnold Weissman also teaches business management especially for family businesses as well as marketing at the OTH (Ostbayerische Technische Hochschule) Regensburg, is head of the competence area for strategy at the Zurich International Business School (ZIBS) and external lecturer at the Zeppelin University in Friedrichshafen. He is also the author of numerous knowledge books and practice-oriented articles. As a sought-after speaker, he speaks at more than 120 events annually.