𝗪𝗲 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗿𝗲𝘁𝗵𝗶𝗻𝗸 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻!
When even the German Manager Magazine titles, “Why managers with a business MBA are a problem for organizations!” something seems to be going wrong. And many of us feel it, even though it is hard to determine the exact issue.
A study has shown that transitioning to managers with an MBA decreases the share of wages while only increasing shareholder value. However, it can be assumed that if organizations lose their talents, this increase is not sustainable.
The study shows an average and I would never want to blame positive individual behavior – and I know many positive examples.
However, I strongly believe we need to teach more than just measuring shareholder value growth to determine success. We must also emphasize the importance of human(ity)-centered decision-making, which can help restore balance. Shareholders represent only a small percentage of humans, but with a change, we can have a more direct and profound effect on human well-being.
I acknowledge that business education has evolved since most of today’s executives studied. However, after speaking with many business students, I’ve realized that although we now teach more about leadership rather than managing human capital, they still primarily learn measures only for the latter.
My passion lies in teaching about collaboration—working on eye-level, fostering appreciation, ensuring psychological safety, and creating a fun work environment. Studies have proven the positive effects of these practices, not only on individuals but also on the long-term performance of organizations. Even traditional consultancies have recognized this trend (see the article by McKinsey below).
Human-driven decision making will lead to not only more employee well-being, but to longterm success which also increases shareholder value.
However, there is still a lack of self-awareness on the level of management. While 97% of managers believe they are good managers, only 31% of employees say they have a good manager. That said, 70% of employees leave their jobs because of their managers.
Let’s work together to change that!
Fritz
Back to DAY8.io
Read the study here: https://www.nber.org/papers/w29874
Manager Magazine: https://www.manager-magazin.de/harvard/erfolg-warum-chefs-mit-mba-ein-problem-fuer-unternehmen-sind-a-ecfa1b8a-d6a7-4440-99ce-b42499e2f0f5
Psychological safety & performance (McKinsey): https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/psychological-safety-and-the-critical-role-of-leadership-development
#leadership #psychologicalsafety #shareholdervalue
