Press clippings

To lead, you have to show character

Wer führt, muss Profil zeigen

In an interview with the weekly business magazine Wirtschaftswoche, Dr. Burkhard Schwenker, CEO of Roland Berger Strategy Consultants, talks about the consultancy market and new management structures. On the question of how industry is coping, Burkhard Schwenker says, "I believe we're generally on the right path. The government has sent out the right signals with its economic stimulus packages and we've clearly got through the downturn." For 2010, he expects to see strong growth in the economy - not at pre-crisis levels, but growth which will benefit most industries. This trend will have a positive impact on the consultancy market, too. Business was very difficult in 2009, he reports, but Roland Berger has performed well, given the overall situation: "Our expertise in restructuring - the major issue for companies last year - helped us to keep our business stable. (…) In contrast to earlier recessions, our clients were not only interested in reducing costs and raising efficiency, but also developing growth strategies for the period after the crisis." In the consultancy market, the focus has shifted to strategic questions, in particular positioning a company in a competitive environment, developing growth strategies or making acquisitions and mergers. But, he adds, restructuring remains a central topic. Asked about what shape German companies are in, and how they compare internationally, Schwenker says, "Very good: Industrial competence is again at a premium. German industry is now in the best position worldwide … This also goes for the smaller companies. After all, five hundred German SMEs are global market leaders in their specialist field, while another five hundred are ranked second or third." He adds that the challenges facing some industries, like greentech, lie in ramping up growth in order to stay competitive. Schwenker says that an important lesson industry should draw from the crisis is that the next boom must be shaped more sustainably. Growth strategies must address pressing problems like climate change. Moreover, managers must think more in terms of scenarios, developing a set of different visions for the future. "We have to define milestones at which we can establish in advance which scenario is achievable." But this demands a change in management structures: He concludes, "Leadership will again become more fundament. To lead, you have to show character. Honesty, integrity, morality and, above all, the courage of your convictions - these will be decisive criteria, and managers must meet them in practice.

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