Briefings 20 Lane Changes p60

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Lane Changes An industry in swift transition

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By Dr. Martin Stemmler

oday the automotive industry is facing some of the biggest changes in its history, and no one knows for certain which road it will take. The uncertainty is all-encompassing — what kind of power train will we have in the future? What kind of sales channels will emerge? Which governments will allow self-driving cars? What kind of safety and environmental regulations will be enacted? How will the automobile integrate itself into the entire transportation network? These are just some of the questions the automotive leaders have to answer. In the past 25 years, the car industry has been driven by the “continuous improvement” process, an idea developed by Toyota. There was also a shift in leadership styles from autocratic and hierarchical management, before 1990, to a more team-oriented approach with job enrichment and rotation of duties. Another major change was the decision to outsource to suppliers the development of components, modules and systems. The focus was on increasing productivity, reducing cost and increasing product quality and reliability. Performance management and a “results” orientation were often viewed as the foundation of the industry’s leadership model. But with so many unanswered questions about the future of the automobile, today’s markets are much more volatile than those of the past. Some companies even talk about an industry in “perpetual crisis.” This generation of leaders has to cope with what we call a “VUCA” world — volatile (Which of the established automobile manufactures will survive? Which new players will enter the market?), uncertain (What will the design look like?), complex (How much technology will be integrated into the automobile?) and ambiguous (Is the desire to own a car still strong?). The automotive industry needs more leaders who have high levels of learning agility as well as emotional intelligence. They have to be flexible, open-minded and authentic, leading change, leading themselves, forming diverse teams that interact virtually. Managers must thrive in a multicultural and multigenerational environment, possess a strong sense of responsibility and maintain high ethical standards. With so much change and uncertainty, Dr. Martin Stemmler is having the right leaders is more Korn Ferry Senior Client Partner, important than ever.  Regional Sector Leader, Automotive, EMEA

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