The trigger was Lars Vollmer’s review of an old article from 2016. My translation: principles instead of rules lead to more customer orientation
I quote Lars’ introduction to the topic:
“Third matchday of the Bundesliga season 2012/13: Hannover 96 against Werder Bremen. Huszti scores the 1:0 with a free kick in the sixth minute. Only four minutes later, he heads the ball into the net to make it 2:0 for Hannover. In the 26th minute, an avoidable handball leads to a 2:1 penalty. And in the 74th minute, after a thrilling game, Bremen finally equalized. But in injury time, Hannover 96 scored the decisive goal. A magnificent overhead kick from Huszti – and it’s in! A dream goal! (Author’s note: What does this have to do with principles instead of rules leading to more customer orientation?)
What happens next will go down in Bundesliga history as one of the weirdest, most incredible moments.
Huszti tears off his shirt in joy, runs towards the stands, jumps over the barrier and climbs onto the fence of the 96ers’ fan block to be celebrated. He has barely returned to the pitch when referee Deniz Aytekin first shows him the yellow card – for exposing his upper body – and then yellow-red for climbing the fence! One second celebrated, the next sent off and banned from the next game. Poor Huszti can’t believe it. Neither can the 49,000 spectators in the stadium.”
Of course, Lars now (here is the link to the article) describes in wonderful words what this has to do with leadership in a figurative sense. I will summarize his wonderful remarks briefly and add a few tips and comments:
What are “summary and highlights”?
The article begins with a curious football match from the 2012/13 Bundesliga season, in which the player Szabolcs Huszti saw the yellow-red card after a spectacular goal – not because of unsportsmanlike behavior, but because of the rigid interpretation of the rules by the referee Deniz Aytekin.
Aytekin did not act at his own discretion, but according to strict rules that allowed no exceptions.
This is usually the starting point for a general criticism of (usually) rigid rules in organizations.
Such rules, which result in “if-then relationships”, take away the judgment of employees and decision-makers and leave them only to act as “recipients of orders”.
Companies and schools that operate according to such strict rules resemble, for example, marble runs in which every event follows a predetermined path.
The problem with these rigid rules (Lars Vollmer calls them “loud models”) is that they do not allow for flexibility and creativity and often fail in complex, unpredictable situations.
Instead, the author suggests applying principles instead of rigid rules. Principles are “silent models” that leave room for independent thinking and acting, thus giving decision-makers more responsibility and freedom.
You can find more about leadership and CRM
in my CRM manifesto here!
Bottom line – rules or principles? Principles instead of rules lead to more customer orientation
- Rules
- work well in stable, predictable situations.
- We are familiar with this from processes, automated sales or marketing campaigns, or from traffic, where the rule (or the road sign) determines the “traffic flow” or the turn-off in the decision tree.
- And as is so often the case, if you don’t follow the rules, you will be punished. This can be very demotivating.
- Ergo: In complex and dynamic environments, rigid rules can be a hindrance.
- Principles
- on the other hand, provide the flexibility needed to encourage independent thinking and adapt to circumstances.
- They delegate responsibility and enable the further development of individuals and organizations.
For me, this results in the following exemplary recommendations for managers:
- Promote principles instead of rigid rules:
- Give your teams guidelines (principles) that reflect the context and values of the company, rather than rigid rules that do not allow for flexibility.
- Relieve the burden – shed ballast or dispose of rubbish:
- To make all of the following points possible in the first place, relief is needed. Only when there is freedom in thinking and relief in the area of responsibility are employees able to make use of this freedom.
- Create decision-making space:
- Encourage employees to think independently and make situational decisions in complex situations instead of blindly following a rigid set of rules.
- Responsibility and trust:
- A principle-based culture demands and promotes responsibility. Trust your employees to make the right decisions by applying principles.
- Recognizing complexity:
- In complex situations, it is crucial that managers apply models and principles that support thought processes rather than stifling freedom of action.
- Reward flexibility:
- Create an environment in which flexibility and adaptability are valued in order to better deal with the increasing uncertainty and complexity of modern markets.
You can find more about leadership and CRM here!
What can teams learn and keep in mind when they work according to principles instead of rules:
- Independence and personal responsibility:
- Teams learn to act independently and take responsibility for their decisions instead of relying on predetermined solutions. They develop a stronger awareness of the consequences of their actions.
- Flexible thinking:
- The principles enable creative and flexible thinking. Teams can react to unexpected challenges without being restricted by rigid rules. They develop the ability to adapt dynamically to changes.
- Better problem-solving skills:
- Since the principles do not provide fixed guidelines, teams have to develop solutions independently. This promotes critical thinking and the ability to look at problems from different perspectives.
- Collaboration and communication:
- In a principle-oriented culture, it is more important to communicate clearly and to coordinate within the team. Teams learn to discuss openly and to make decisions together based on the overarching guidelines.
- Trust and respect:
- principles create trust in the ability of each individual to act responsibly. Teams develop mutual trust and respect because they know that each team member has understood the principles and acts responsibly.
- promote a learning culture:
- Mistakes are seen as an opportunity for further development and learning because there are no rigid rules that must be followed exactly. Teams become more willing to experiment and promote a culture of continuous learning.
- This aspect of learning, ladies and gentlemen, is very important to me. Learning, educating, organizing further training. This is how a continuous improvement process is created.
Principles instead of rules lead to more customer focus
When teams work according to principles instead of rules, they can act more dynamically, creatively and independently, which in the long term leads to better results and stronger collaboration. Does that sound like Scrum or agile methods? Yes, there are definitely parallels.
PS: What does this have to do with customer orientation?
Switching from rigid rules to flexible principles not only has advantages internally. Teams that act independently and are guided by principles can respond much more quickly and effectively to customer needs.
They are better able to find creative solutions, react quickly and agile, and thus establish a much more customer-oriented way of working.
Success lies not only in internal cooperation, but also in the ability to always put the customer first – and to make decisions immediately when needed.
Whether that’s for
- an offer that is about to be accepted,
- for a complaint, in the call center
- for a service case under a service contract, or
- for a service employee in the workshop in the event of a service call.
It is the ability to make the right decision within a culture, in the interest of both the company and the customer.
This means:
- “Customer Value” (the value of the customer for the company) is equal to “Value for the Customer” (the value of the company’s performance for the customer)
