What have we learned from 2020 to lead better in 2021?

As German organisations move into the second year of the pandemic, it has become clear that the ride out of the lockdown economic landscape will not be a smooth one.

New variants of the virus, a slow and uneven global roll-out of the vaccine, continued disruption of travel and supply chains are just some of the factors that might well make 2021 unpredictable in so many different ways.

Germany’s strong basis for bouncing back

Germany entered the COVID-19 crisis with favourable economic conditions, supported by strong domestic demand on the back of record low unemployment and robust wage growth.

The COVID-19 pandemic shattered that picture with an unprecedented economic contraction of 11.5% in the first half of 2020. Thanks to an effective public health response and strong macroeconomic policy, Germany’s economy displayed more resilience than many competitors.

The IMF goes on to predict ‘a choppy economic recovery, unevenly distributed across sectors, and with quarterly swings conditioned by volatile infection dynamics through early 2021’.

This is on top of Germany’s ‘longstanding challenges related to population aging, infrastructure gaps, and an impending green energy transition. All will be compounded by structural changes ushered in by the pandemic.’

Other forces to navigate include the acceleration of digitization and innovation, a greater balance between social and economic goals, the global push for a green economic recovery and volatile geopolitical and global trade relations.

In short, more prolonged disruption is probably the only truly predictable thing in the short-term.

Learning from 2020 to excel in 2021

What kind of leadership and talent plan is ready for that type of future, not just to survive the ongoing Covid situation, but to seize the transformational possibilities that emerge in times of great change?

What kind of leaders will be able to lead a fast acceleration should it come? Or simply manage a measured bounce back?  Or, in the worst-case scenario, hold on if the virus proves more resourceful than even the best governments and health experts? And how will this differ sector by sector and function?

We asked a few of our senior sector and function specialists at Odgers Berndtson Germany to reflect on ‘Covid Year One’ and take a tentative look forward. What were the prospects for their sectors, what had senior leaders learned from 2020 and what will leaders have to bring to their 2021 game to be winners?

We begin with the sector perhaps most in the headlines in the fightback against the virus, life sciences.

Life Sciences

“Everyone’s eyes are on those creating, testing, manufacturing and distributing the vaccine defences against Covid. It has highlighted some great leadership, the challenge of transnational collaboration, unprecedented demands for transparency and navigating highly-charged political dimensions. Senior leaders in the industry will continue to be under pressure, whilst the whole Life Sciences eco-system will have to embrace the transformational effects of technologies such as AI in an industry that has shown itself to be the most purpose-driven of all.” says Silvia Eggenweiler, Partner at Odgers Berndtson Germany and Member of the Life Sciences Practice.

Supply Chain and Logistics

Our Head of the German Automotive Practice, Ralph Goeller, mentions: “Supply chains, logistics and procurement have been stretched and battered by COVID-19, and their leaders’ challenges tell a very valuable story. The conversation has shifted from crisis and cost management to the ‘re-think phase’. Supplier risk-management is getting attention as vulnerabilities in the supply chain become clear. The pressing question is how to build resilience and agility for the future. And, for leaders, the additional challenges of sustainability grow every day. Not surprisingly, organisations are reviewing how they bring flexibility and speed into decision-making, allowing for agility without having a negative impact on profit or unnecessary risk. Leaders with the qualities to make that happen are in high demand.”

Technology

“Whether it was virtual schools or zoom meetings, as well as countless other applications, technology was the global ‘winner’ of the lockdown, and it is the hope for many as the application of AI becomes a game-changer. Digital transformation is becoming more of a reality in some industries, and it is hoped that the recently-announced government digital plan will speed the pace of change on the use of data, for example. Technology leaders will certainly continue to face cultural as much as technological challenges as technology challenges business models and conservative outlooks.” says Markus Trost, Partner and Head of the Technology Practice at Odgers Berndtson Germany.

Human Resources

Katja Hanns-Terrill, Managing Partner at Odgers Berndtson Germany, adds: “When offices shut and manufacturing adjusted, the pressures on Human Resources’ leaders were unrelenting, and as one COVID year turns into another, there is no let-up. CHROs now have a voice and influence like never before. They have had to manage a humanitarian crisis, lead change and adaptation, often without any precedent, and are working hand-in-hand with the CEO and the senior team. It has rewarded those able to think and work strategically, and as the changeable COVID environment shows no sign of settling down, the role will never revert to its pre-pandemic state.”

To discuss your talent plans and help with how to identify the leaders who will shine in 2021, no matter what it brings, please get in touch. We will be happy to discuss how we can help.