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 2012/13 Bundesliga season: Hannover 96 against Werder Bremen. Huszti makes it 1:0 with a free-kick in the sixth minute. Just four minutes later, he prepares the 2:0 for Hannover with a header. In the 26th minute, an avoidable handball led to a 2:1 penalty. And in the 74th minute, after a thrilling game, Bremen finally managed to equalize. But then, in stoppage time, the decisive goal for Hannover 96: a wonderful 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 as one of the weirdest, most incredible moments in Bundesliga history.
Huszti tears off his shirt with joy, runs towards the stands, jumps over the railings and climbs onto the fence of the 96ers’ fan block to celebrate. As soon as he returns to the pitch, referee Deniz Aytekin first shows him a yellow card – for exposing his upper body – and then a yellow-red for climbing the fence! Cheered one second, sent off the next and suspended for the next game. Poor Huszti can’t believe it. Neither can the 49,000 spectators in the stadium.”
Of course, Lars now describes (here is the link to the article) in wonderful words what this has to do with leadership in a figurative sense. I’ll briefly summarize his wonderful remarks and allow myself a few tips and additions:
What are “summary and highlights”?
The article begins with a curious soccer match from the 2012/13 Bundesliga season, in which the player Szabolcs Huszti was shown a yellow-red card after scoring a spectacular goal – not because of unsportsmanlike conduct, 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 general criticism of (usually) rigid rules in organizations.
Such rules, which result in “if-then relationships”, deprive employees and decision-makers of their ability to make judgments and allow them to act only as “recipients of orders”.
Companies and schools that operate according to such strict sets of rules resemble, for example, spherical tracks in which every event follows a predetermined path.
The problem with these rigid sets of 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 proposes the use of principles instead of rigid rules. Principles are “silent models” that leave room for independent thinking and action and therefore give decision-makers more responsibility and freedom.
You can find out more about leadership and CRM
in my CRM Manifesto here!
Quintessence – Rules or principles? Principles instead of rules lead to more customer orientation
Rules
work well in stable, predictable situations.
We know this from processes, automated sales or marketing campaigns or from road 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, however, rigid rules can be a hindrance.
Principles
on the other hand, offer the necessary flexibility to promote independent thinking and adapt to the circumstances.
They delegate responsibility and enable the further development of individuals and organizations.
For me, this results in these 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 don’t allow for flexibility.
Provide relief – throw off ballast or dispose of waste:
In order to make all of the following points possible in the first place, relief is needed. Only when there is freedom of thought and relief in the area of responsibility are employees able to fill this space.
Create scope for decision-making:
Encourage employees to think for themselves in complex situations and make situational decisions instead of blindly following a rigid set of rules.
Strengthen responsibility and trust:
A principles-based culture demands and encourages responsibility. Trust your employees to make the right decisions by applying principles.
Recognize complexity:
In complex situations, it is crucial that managers apply models and principles that support thought processes instead of stifling room for maneuver.
Reward flexibility:
Create an environment where flexibility and adaptability are valued to better deal with the increasing uncertainty and complexity of modern markets.
What can teams learn and observe 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 greater awareness of the consequences of their actions.
Flexibility in 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 change.
Better problem-solving skills:
As the principles do not provide fixed guidelines, teams have to develop solutions independently. This encourages critical thinking and the ability to look at problems from different perspectives.
Collaboration and communication:
In a principles-based culture, it is more important to communicate clearly and coordinate within the team. Teams learn to discuss openly and make decisions together based on the overarching guidelines.
Trust and respect:
Principles create trust in the ability of each individual to act independently. Teams develop mutual trust and respect because they know that each team member has understood the principles and acts responsibly.
Promoting a learning culture:
Mistakes are seen as an opportunity for further development and learning, as there are no rigid rules that must be followed exactly. Teams are more willing to experiment and promote a culture of continuous learning.
Ladies and gentlemen, this aspect in particular – learning – is very important to me. Learning, training, organizing further training. This creates a continuous improvement process.
Principles instead of rules lead to greater customer focus
When teams work according to principles instead of rules, they can act more dynamically, creatively and independently, which leads to better results and stronger collaboration in the long term. Does that sound like Scrum or agile methods? Yes, there are definitely parallels.
PS: What does this have to do with customer orientation?
The change from rigid rules to flexible principles not only brings internal benefits. Teams that act independently and are guided by principles can react much faster and more effectively to customer needs.
They are better able to find creative solutions, react in an agile manner and thus establish a much more customer-oriented way of working.
Success lies not only in internal collaboration, but also in the ability to always put the customer at the center – and to make decisions immediately when necessary.
Whether this is
an offer that is about to be placed,
a complaint, in the call center
a service case as part of a service contract or
the service employee in the workshop in a customer service case.
It is the ability within a culture to make the right decision. Both in the interests of the company and in the interests of the customer.
This means:
- “Customer value” (value of the customer for the company) is equal to ‘value for the customer’ (value of the company’s performance for the customer)
