In a recent discussion on the World Economic Forum’s Meet the Leader podcast, Roland Busch, CEO of Siemens, emphasized the necessity of altering management mindsets and empowering employees at various levels for successful business transformation. Busch highlighted the imminent changes in the business landscape, driven by digitalization, automation, and sustainability efforts, urging a reevaluation of current management practices.
According to World Economic Forum, over 40% of workers’ core skills are projected to transform within the next five years, necessitating a shift towards a growth mindset and accelerated learning cycles. Busch stressed the importance of embracing these changes, not only for individual success but also for the sustained growth and efficiency of businesses. He pointed out that the ongoing transitions in the digital sphere, connectivity, and sustainability are creating significant impacts on the real world, making it imperative for businesses to adapt quickly.
Addressing the challenges of an ageing workforce and labour shortages, Busch highlighted the potential of digital and robotic automation to enhance productivity, particularly in sectors like nursing. He elaborated on the strategic importance of ensuring that tools and resources are readily available where and when they are needed, drawing parallels between automated factory shop floors and healthcare settings. This approach aligns with the World Economic Forum’s findings, which underscore the integral role of automation in future workforce strategies.
Busch underscored the importance of empowering individuals across all levels of an organization to make decisions quickly, advocating for a decentralized approach to management. He emphasized the need for clear targets and accountability, alongside the freedom to make decisions, to strike the right balance between control and empowerment.
Reflecting on his personal journey, Busch shared insights on the challenges and rewards of delegating control, highlighting the crucial role of trust and support in fostering a productive work environment. He underscored the necessity of lifelong learning and continuous skill development in the face of rapid digitalization, advocating for an evolutionary approach to training and education.
Siemens has responded to these challenges by implementing a learning platform and developing a degree-like system to facilitate continuous learning and skill development. Busch emphasized the cost-effectiveness of reskilling existing employees, as opposed to hiring new talent, in staying relevant in the rapidly evolving business landscape.
Addressing the managerial challenges posed by the digital transformation, Busch highlighted the necessity of adapting to a platform-based economy, fostering ecosystems of collaboration among various companies. He outlined the training initiatives undertaken by Siemens to equip managers with the requisite skills for thriving in this new economic landscape, emphasizing the importance of empathetic leadership and effective listening skills.
In conclusion, the discussion with Roland Busch sheds light on the profound changes sweeping across the business world, driven by digitalization, automation, and sustainability efforts. The Siemens CEO’s insights underscore the urgency of adopting a growth mindset, empowering employees, and fostering continuous learning to navigate these transformations successfully.