Hello from Hamburg,
“Of all the newsletters I’ve read from you, this is the first time I’ve sensed a hint of resignation,” a loyal reader told me after reading the latest issue, which dealt with the rise of autocratic structures. “Is there going to be a war?” a colleague asked me in February, looking distraught, after I returned from the Munich Security Conference. There, I witnessed the U.S. vice president proclaiming the end of America’s unconditional solidarity with Europe. “Where is our company headed?” employees worry in light of the economic situation.
Fear of war in Europe, autocratic tendencies, rising costs of living, jobs threatened by the economic crisis and artificial intelligence: These are times of uncertainty, palpable in the day-to-day operations of our companies and organizations. Now, leaders face a particular challenge: We are expected to inspire courage, radiate confidence, and open up new perspectives—even though we often don’t know exactly where things are headed for our companies, ourselves, or the world.
A common way of dealing with the daily stream of bad news is to foster a sense of solidarity by complaining together. “What tariffs has Trump raised again today? Is he out of his mind?” “The new federal government’s coalition agreement is useless for solving the problems. It’ll end up just like the ‘traffic light’ coalition!” “Our people in the organization still haven’t grasped the signs of the times. What else are we supposed to do?” Or to mourn the good old days. Sure, getting upset together helps for the moment. But it doesn’t provide a forward-looking perspective or confidence. On the contrary: “Insisting on one’s own feelings of loss (and helplessness, I would add) is a self-granted license for self-pitying self-righteousness.” And a practical tool for avoiding confronting reality, as historian Valentin Groebner recently and aptly described. Do we really want to spend the next four years getting worked up over the daily cacophony coming out of Washington? And do we seriously believe that, for the most part, the government can solve the challenges we face at every turn?
Rather, it is the by no means new principles of good leadership that can help. Listen. Give space to concerns—including your own. Ask more specific questions: How are you coping with the current situation at work, in the city, and in the country? What’s weighing on you? Speaking openly helps and sends the message: You’re not alone with your worries. Now more than ever, it’s crucial to create an environment of psychological safety: being able to honestly say how you’re doing without fearing repercussions. Fostering cohesion through shared activities: organizing a weekly breakfast. Launching a fundraiser for the civilian victims of the war in Ukraine. Creating forums of up to eight leaders where they can confidentially discuss their day-to-day challenges and share tips.
What matters now is to counter the erratic, knee-jerk reactions conveyed by the daily news with a cool head and a long-term perspective. To emphasize that, as a company, we are using the challenges of the crisis as an opportunity to become more future-ready. We’ll leverage artificial intelligence to streamline work processes that have long been a source of frustration—in accounting, data analysis, presentations, scheduling, and travel bookings. We’ll explain our path forward: We’re cutting budget X to remain capable of acting in future-oriented field Y. We’ll finally divest ourselves of product Z, business unit A, and the long-loss-making branch in country X. A recent Gallup study shows that hope is the most important need employees now expect from their leaders—even ahead of trust, empathy, and stability.
When the U.S. Vice President concluded his speech on distancing from Europe—mentioned at the beginning—at the Bayerischer Hof in mid-February, the atmosphere in the room was icy. In a matter of seconds, I went through four emotional states: a shudder, relief (“Finally, we’ve understood!”), defiant courage (“Now more than ever!”), and confidence (“We’ll make it!”). Crises hold opportunities for change. At long last, we in Europe are being forced to build economic, technological, and security autonomy based on our code of values. In Berlin, a strong movement is currently taking shape within the tech startup scene that is shifting away from the traditional fixation on the U.S. and turning toward Europe.
Perhaps it takes uncertainty first to make genuine, infectious confidence and effective strength possible. That’s where we are now. How wonderful!
