Thus, 40 percent of employees surveyed indicated that the “command and obey” principle still rules the workplace. This poses an enormous challenge to corporate culture in Germany. “With an authoritarian management style such as this, companies are in an extremely poor position to undergo digital transformation. Because without a new understanding of management, it will be very difficult for companies to increase the innovative potential of their employees,” according to Thomas Rohrbach, General Manager of the Staufen subsidiary, Digital Neonex, which provides strategic and operational support to companies undergoing digital transformation. “Innovations also thrive in an environment of self-realization. If creative instinct is being stifled by a company’s overbearing hierarchical mind-set, that company can’t expect to make great strides,” digitization expert Rohrbach continues. A lack of appreciation also does little to drive employees to do their best. At first glance, things still appear quite good in the German professional world: 77 percent of employees feel that they are completely respected as people. 71 percent feel their employer is open to criticism. However, in many companies, this only applies when times are good. In approximately one third of companies, managers adopt the wrong tone under stressful conditions. The majority of those surveyed assume that when this happens, their managers are directly passing on the pressure they are feeling from above. “To be fair, many managers feel considerably overwhelmed when faced with having to upgrade their digital knowledge while simultaneously learning a new management style,” points out Remco Peters, Staufen AG partner. In some instances, they have to leave behind an identity that they have built up over many years and become mentors who inspire their employees by example. “Technical qualifications can be gained through training and then be entrenched in the workforce; however, a culture that is open to innovation is one that leads by example,” according to lean leadership expert Peters. That is why it is also important that management is proactive at the value-added level. This doesn’t necessarily mean on the shop floor. Digital cooperation systems now make it possible to work closely with employees across different locations. Download the survey “Industry 4.0 Index 2016” Website of Staufen Digital Neonex Press release (.pdf) Press release (.rtf) Download the press graphics (in German)