Interview with Vlatka Hlupic (Professor of Leadership and Organizational Transformation at Hult Ashridge Executive Education and CEO of The Management Shift Consulting Ltd)
Vlatka Hlupic, an award-winning thought leader and author, was a computer scientist who became a behavioural scientist. After studying many different disciplines, from computer science and economics to behavioural science and organisational development, she connected the dots among different disciplines and created ‘The Management Shift’ approach. This is known as the ‘HOW’ of the big shift from old ways of working based on command and control to new ways of working focused on people, purpose and collaboration.
Traditional ways of working that include standardisation, specialisation and hierarchical command and control worked well during the first industrial revolution, where productivity and efficiency were key to a successful business. Hlupic however, noted that in modern organisations this approach is very detrimental for performance, innovation and engagement. In the light of this, there is a need for companies to become more humanised.
Technology and Fourth Industrial Revolution
In the midst of the Fourth Industrial Revolution, technology is changing the way the workforce and individuals operate. According to Hlupic, the result of this onset is twofold; on the one hand, interconnectivity between digital, biological and physical systems is increasing, but at the same time, we feel a growing need to reclaim our humanity. For example, there is a growing desire for diversity, healthier workplaces and a healthier planet, social justice and so on. We need to create workplaces that are diverse in terms of age, nationality, culture, gender and experience, and embrace the expectations of younger generations. She says, “The younger generation of workers want purpose, development and feedback and they don’t want to be micromanaged. We need to adjust our management and leadership styles and organisation culture to attract and attain young talent.”
Current trends in technology, including AI, big data, machine learning and mobile applications have an influence on the way we work and live, and these technologies should be used to make our lives easier. Hlupic expressed, “Technology needs to serve us, not the other way around. Technology is about making our lives better and more productive, and that’s how it should be.” Thanks to technology, flexible and remote working is now far easier, and AI can assist individuals with juggling projects, assignments, jobs and careers. Also, data analytics allow companies to learn a great deal about consumer preferences, thus making their jobs easier. Mobile apps are also very useful to assist individuals with work, health and well-being as well as social activities.
Changing management trends
With the ongoing changes to the workforce, companies should also embrace changes to management styles. Company awareness of the need to go through a management shift allows for positive changes to occur in an individual mindset and organisational culture. Hlupic’s ‘The Management Shift’ framework identifies the five levels of an individual mindset and corresponding organisational culture as:
- Level 1: Lifeless mindset: apathetic culture, where not much gets done and the culture is detrimental to mental health, with fear, blame and sadness being present.
- Level 2: Reluctant mindset: stagnant culture, where individuals do the minimum they can get away with. They work only for the paycheck, and their minds, hearts and dreams are elsewhere.
- Level 3: Controlled mindset: orderly culture, where employees are micromanaged. This is the traditional management style with low engagement, performance and innovation, and a low passion for work.
- Level 4: Enthusiastic mindset: collaborative culture, with trust and transparency. Teams work in collaboration, have fun and enjoy giving back to the society. Organisations have increased performance, engagement and profit.
- Level 5: Limitless mindset: unbounded culture, where employees have a desire to solve big problems for humanity and work tirelessly to achieve that.
Organisations should aim to move their culture towards Level 4 and occasionally 5. According to Hlupic, once workplace culture reaches these higher levels, it is easier to bounce back if the culture slips to a lower level. At levels 4 and 5, inspired and engaged employees with a passion for work are a norm. Inspiring managers help their teams to find their purpose. They are nurturing, trusting, compassionate and caring. They view their team members as humans, not only as providers of numbers on a spreadsheet. They help individuals create ideas, grow and develop. They remember that people are the sources of value creation; they trust individuals to do their jobs without micromanaging.
Consequences of bad management
Hlupic asserted that traditional managers are those who operate at Levels 1, 2 and /or 3. Work-related stress often emerges as a consequence of behaviours at those lower levels. Companies operating at those levels are unable to consistently attract and retain talent. As talent is the backbone of any company, organisations operating at these levels will likely be impacted financially. On the other hand, organisations that nurture employees have improving performance indicators that reflect this.
Implementing a Level 4 culture will improve management quality and benefit both individuals and companies. HR teams can implement changes such as mentoring schemes and embracing a culture of trust and transparency, making employees feel comfortable to speak the truth in uncomfortable situations, investing in health and well-being, and providing training and development.
The benefits from an individual who has completed the ‘individual shift’ programme created by Hlupic are immediately noticeable: they move towards level 4 leadership. Their actions focus on inspiring, motivating and engaging others. When individuals are more engaged, more passionate and more motivated, they will be more creative, and there will be more company profit. She explained, “When we are surrounded by the lower levels of management (Levels 1 to 3), the atmosphere will be negative and draining. Conversely, when we are surrounded by higher-level managers (Levels 4 to 5), the atmosphere is positive and energising.”
Managers and leaders
Peter Drucker said, “Managers do things right; leaders do the right thing.” Leaders work on a strategic level; managers work at an operational level. Neither managers nor leaders, however, should micromanage. In a Level 4 company, leaders emerge based on their knowledge of a situation, project or client.
Although implementing a management shift is easier for a smaller organisation, big shifts are also possible in larger companies. Hlupic recommends corporations to begin by adjusting one division initially, and later spread these changes across the company as a whole.
The importance of adapting business models to accommodate flexible, diverse and contingent workers cannot be overlooked. “Organisational culture is key,” stated Hlupic, “trust, transparency, purpose, collaboration, caring culture with inclusivity and diversity – these are some of the important factors for creating high performing organisations.” Workplaces where individuals feel included, valued, nurtured, supported, and feel that they are being heard and are able to make a difference, will achieve sustainable results. In short, managers and leaders with Level 4/5 mindset will foster creation of productive and engaged teams, which will lead to a more successful business.
Paul Arkwright
Publisher
