The concept of integral leadership

The parameters of leadership in companies are undergoing profound changes. The key transformation drivers of digitalisation and decarbonisation are being catalysed by a polycrisis with the reciprocal effects of the COVID-19 pandemic, wars, climate change and their economic impact. At the same time, there is growing social uncertainty and excessive demands as well as a shift in social discourse towards populist and authoritative thought patterns.

The transformation processes are also bringing about a fundamental change in the world of work. Digitalisation is leading to an increase in automation in industry and services. Jobs and the content of their activities are changing comprehensively. The further increase in complexity in primary and secondary company processes that often accompanies the megatrends of digitalisation and decarbonisation is often perceived by employees as an increase in workload.

Wellbeing and health in the workplace

Many employees realise that their well-being has either deteriorated or remained the same over the past year. If work-related stress can no longer be managed, this impairs performance at work, which can lead to an increase in physical and/or mental illnesses.

According to the Federal Institute for Occupational Safety and Health, more than 880 million days of incapacity for work will be recorded in Germany in 2022 (see BauA Online 2023: n.p.). Of these, 130 million sick days are attributable to mental illnesses (depression, adjustment disorders, etc.) (cf. ärzteblatt.de 2023 :n.p.).

According to the Federal Ministry of Labour, possible causes for the increase in mental illness include the increasing openness in dealing with mental illness and the current crises, as well as changes in the world of work due to developments such as digitalisation, decarbonisation and demographic change. It is undisputed that individual leadership behaviour is also a significant influencing factor on the (mental) health of employees in both directions; in a positive sense (leadership as a resource) and in a negative sense (leadership as a stressor).

However, it should be noted that managers themselves feel increasingly stressed in an area of conflicting demands and that one in four to five managers is working at their performance limits. Although more than 30% of managers describe themselves as being at risk of burnout, it can be noted that ‘the smooth transition from normal exhaustion to stress to the first stages of burnout is often not recognised, but accepted as a “normal” development’ (Buchenau 2020 :9).

Leadership in the transformation

From the diagnosis of the rapid changes in the world of work and the challenges for managers, a multi-perspective model of integral leadership can be derived as a possible frame of reference for a successful transformation.

The starting point for this is the assumption that even the multidimensional behavioural leadership approaches, ‘which focus on the conscious and reflective actions of the manager in the form of the way they interact with employees’ (Schirmer/Woydt 2016 :163) as a success variable of leadership, are not (or no longer) sufficient on their own to overcome the current challenges.

‘The integral leadership model is a framework of thought that aims to break up the entrenched and bring together the fragmented and thus provide a deliberately different response to organisational conditions that have become difficult and a leadership task that has become demanding as a result’ (Weibler 2023 :653).

At this point, the term ‘integral’ refers to a holistic leadership process that combines a dimensional combination of the individual and collective level with the dual perspective of internal view (internal experience) and external view (external perception). An essential basic assumption is that the four quadrants resulting from the combination of dimensions are not only equally important, but are also interrelated and influence each other.

Managers who lead integrally thus create ‘a framework in which each employee can develop individually according to their values, needs and experiences so that they can fulfil their area of responsibility with motivation and commitment.’ (Future Excellence – Kuhlmann/Horn n.d. :n.p.)

Figure 1: Overall model of integral leadership according to Weibler (2023)

The following suggestions for the design of the Integral Leadership model are an invitation to discuss, further develop and adapt it in line with the respective parameters of managers in companies.

1. Awareness: Intra-subjective self-leadership

The ability to lead oneself is a necessary prerequisite for successful leadership of employees and teams: ‘Only those who can lead themselves can lead others’ (Janssen/Grün 2017 :31). Self-leadership encompasses various sub-processes such as self-observation, will control, emotion regulation, self-motivation and the development of a proactive mindset (cf. Balz/Heisig 2022 :194f.).

The ability to lead oneself ultimately leads to resilience, the ability of people to overcome adversity and crises by drawing on personal or socially mediated resources and restoring mental health. From a leadership perspective, ‘increasing the resilience’ (…) of people and systems (…) has the highest priority’ (Schomburg et al 2016 :95). Here you will find an introduction to the topic of leadership and individual resilience.

2. Behaviour – Objectified leadership behaviour

The Full Range of Leadership Model (FRLM) is ‘currently one of the most important and influential leadership models’ and claims to cover all leadership behaviour. It can be assumed that an ‘ideal leader exhibits both transformational and transactional leadership behaviours’ (Furtner/Baldegger 2013 :132), whereby both facets are important for the success of leadership.

Transactional leadership views leadership as an exchange relationship in which rewards (benefits of all kinds) are exchanged by the leader for the performance of those being led.

The main forms of transactional leadership are

• Management by exception (active): Tasks are delegated for independent processing. The manager intervenes by monitoring and controlling in order to recognise possible errors and disruptions in workflows and work processes at an early stage.
• Management by exception (passive): Managers only intervene after problems have occurred.
• Contingent reward as a core element of transactional leadership. Performance targets and expectations of employees are clearly communicated. Motivational incentives are set by promising rewards for certain achievements. If the manager’s expectations are met by the employees, the contingent reward is given. The focus here is therefore on two-sided rational benefit calculations.

Six components are considered essential behaviours of transformational leadership, which transforms the ideals, values and goals of those being led and thus enables a level of employee performance that goes well beyond the conventional level:

• Idealised influence: The manager has a recognisable role model function that generates respect and trust, which fosters identification with them. Their behaviour is charismatic and they convey credible and comprehensible values and ideals that are adopted by the employees.
• Inspiring motivation: The manager paints an attractive picture of the future. A vision conveys enthusiasm and meaning to employees for their own actions.
• Intellectual stimulation: The manager encourages creative and innovative thinking. They stimulate new and unconventional ideas and perspectives that challenge established views and guidelines. Risks are consciously taken and mistakes are tolerated.
• Individual support: Managers recognise the individual needs and abilities of employees and make comprehensive use of all forms of personnel development to further develop their skills in a targeted manner.
• Promotion of group goals: To overcome egoism and mutual support, group goals are prioritised and shared experiences and positive experiences are emphasised to create a sense of togetherness.
• High expectations: The manager expects high performance and at the same time expresses a high level of trust in the employees’ abilities.

If such consistent leadership behaviour is successful, it is not only likely to have a positive impact on employee performance, but also on employee satisfaction.

If we look at leadership from an explicitly health-oriented perspective, there are a large number of studies that show the positive effect of transformational leadership on the mental health of employees. Managers who place a recognisable value on their own health and act accordingly (exemplify self-care and avoid presenteeism) have a strong role model function and thus also have an indirect health-promoting effect on employees.

The FRLM has since been expanded, as strategic and task-orientated developments were not previously included. The addition of instrumental leadership can be defined by four characteristics that are ‘based on the manager’s expert knowledge and implementation experience’ (Weibler 2023 :367):

1. Environment analysis to find longer-term prerequisites for increasing the performance level of a team.
2. Strategy to concretise the company’s vision for employees.
3. Path-goal support such as defining direction, providing resources, removing obstacles, etc.
4. Results feedback on work progress to support employees in their development in the sense of supportive learning.

With reference to ambidextrous leadership, Fastenroth and Jochmann also emphasise the need for a broad repertoire of leadership behaviours for a successful manager. They should have ‘an inventory of task-, employee- and change-oriented leadership behaviours’ (Fastenroth/Jochmann 2019 :n.p.) in order to ‘be best prepared for the different requirements of a digital world’ and to successfully implement the transformation in the company.

Ambidexterity in leadership is geared towards exploitation (focus on efficiency and optimisation of existing processes and products) with one hand and exploration (focus on flexibility and development of new products/business models) with the other. ‘Successful leadership in the age of the digital economy requires (…) the ability to lead with both hands and to be able to choose the right hand in a specific situation’ – whereby the transformation requires the use of (development) speed and innovation more strongly and more frequently.

Figure 3: Leadership behaviour on the continuum of ambidexterity according to Fastenroth/Jochmann (2019)

In addition to transformational leadership (see above), digital leadership is particularly suitable for promoting innovation and transformation in companies.

Various forms of digital leadership are discussed. The best-known school of thought is the one that views leadership as a ‘central lever for ensuring the success of digital transformation’ (Weibler 2023 :713). Digital transformative leadership is based on a digital leader: ‘Transformative leadership is about creating a vision, inspiring others to follow that vision and empowering them to achieve it (…)’ (Abatiello 2023 :n.p.).

The understanding of leadership is based on the five basic principles of VOPA+:

Figure 4: VOPA+ model Petry 2016 based on Buhse 2014

1. Networking: Managers create structures and use technologies that enable employees to transfer knowledge and collaborate across spatial, hierarchical and intra-organisational boundaries.
2. Openness: Managers are open to new ideas and experiments. To this end, they give employees the freedom and opportunities for self-organised collaboration.
3. Participation: Decisions are made – to varying degrees – with the involvement of employees.
4. Agility: Managers think in scenarios, keep options open, experiment with solutions and learn very quickly from their experiences.
5. Trust: Managers radically trust their employees and meet them with fundamentally positive expectations regarding their future actions. The manager assumes that the employees will reciprocate – in other words, repay trust with trust (reciprocity behaviour). Without a basis of trust, networking, openness, participation and agility are not possible.

A VOPA+ culture ultimately means ‘empowering employees’, which has a positive effect on ‘performance, job satisfaction and commitment’ (Petry 2016 :59).

However, it should be noted that the empowerment (leadership) concept goes well beyond the five basic principles of VOPA+ and is aimed more at ‘enabling the autonomous behaviour of those led, whether through structural measures or through indirect stimulation aimed at the psyche’ (Weibel 2023 :678).

It seems questionable to what extent the emphasis on a visionary digital leader can be reconciled with the idea of autonomy in management practice.

The reference made here to transformational and transactional leadership as well as digital transformative leadership (see above) does not exclude a reference to other modern leadership approaches (such as complexity leadership or servant leadership) in the context of leadership behaviour.

3. Culture – Leadership in socio-cultural environments

The subject of this quadrant is the development of relationships and culture within the organisation. Interpersonal processes between the manager and those being managed as well as between the managers themselves (team development) are to be considered here, as is the use of symbols in management cultures.

‘Effective teamwork is only possible in a psychologically safe working environment’ (Edmondson 2020 :196). In an organisational context, psychological safety describes the shared conviction of being able to question, criticise, express dissenting opinions, contribute unconventional ideas or admit mistakes in a safe environment without having to expect negative consequences from team members or the manager. It is undisputed that shaping relationships between the team members themselves (learning orientation, communication and conflict behaviour) as well as leadership (e.g. transformational) create psychological security.

‘Self-leadership and self-organisation can only lead to more flexibility, creativity and innovation through successful communication and decision-making processes in the team’ (Bachmann/Quispe Bravo 2021 :323). Psychological safety can therefore be seen as an essential element of successful teamwork.

The use of communication-orientated, action-orientated or object-related symbols by managers is aimed in particular at conveying meaning, strengthening meaning and changing meaning. The use of symbols in the context of leadership requires social skills on the part of managers and is challenging for them to actually inspire trust.

4. Organisation – Leadership in and through structures and leadership systems

This quadrant of leadership includes the structural-system-related forms of leadership. These include in particular forms of indirect leadership. Their design instruments include, for example, leadership principles, assessment and incentive systems, which are intended to trigger desired behaviour and counteract undesired behaviour. Integrated and sustainable change management is also particularly important in the context of transformation. Such change management serves to ‘reduce risks that can arise through optimisation, organisational change and transformation’ (Keuper/Groten 2007 :12).

Leadership principles are intended to raise awareness of the topic of leadership, create an orientation framework for managers and employees and a common understanding of leadership in an organisation. However, the use of leadership principles requires an activity on the part of the leader to constantly review their own leadership behaviour and, if necessary, to make appropriate adjustments.

An incentive system can be defined as a summary of all consciously designed working conditions. A distinction can be made between material (monetary) and immaterial (non-monetary) incentives. While the monetary incentives of remuneration are primarily aimed at extrinsic motivation, the non-monetary incentives (personnel development, working time models, etc.) have an effect on the intrinsic motivation of employees.

‘The better the company incentives are aligned with the corporate vision and strategy, the stronger the steering effect and the more operational management work is supported’ (Schirmer/Woydt 2016 :8).

Conclusion

The concept of integral leadership, with its four fundamental leadership perspectives, offers a comprehensive view of the impact factors of leadership. It provides managers with a framework for successful leadership in transformation without postulating a ‘one-best-way’. Instead of actionism and quick fixes from one direction (perspective), this framework enables previously untapped potential to be recognised and exploited through consciously holistic leadership thinking and action.

This results in a wealth of answers as to how good and forward-looking leadership in companies can succeed even under difficult and changing parameters.

Managers who lead integrally are able to successfully shape change in companies and, as role models in terms of self-leadership, make a positive contribution to stabilising the health of employees in the face of the pressure to change.

After all, the current times require managers to take a clear stance in favour of a new way of working together, as expressed by the #Zusammenland – Vielfalt macht uns stark! initiative.

Notes:

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Literature:

Abatiello, A. (2023): How transformative leadership can improve performance and drive business reinvention

Ärzteblatt.de (2023): Krankheitstage wegen psychischer Erkrankungen weiter gestiegen

Bruch, H./Lee, P. (2013): Die erschöpfte Führungskraft in: Personalmagazin Heft 11/2023

Buchenau (2020) Kleine Stresskunde in: Euler (Hrsg.) Anti-Stress Trainer. Springer Fachmedien Wiesbaden

Bundesanstalt für Arbeitsschutz und Arbeitsmedizin (2023): Volkswirtschaftliche Kosten durch Arbeitsunfähigkeit 2022

Edmondson, A.C. (2020) Die angstfreie Organisation. Vahlen Verlag

Future Excellence -Kuhlmann, H. (o.J.): Integrale Mitarbeiterführung

Janssen, B. / Grün, A. (2017): Stark in stürmischen Zeiten. Ariston Verlag

Keuper, F./Groten, H. (2007) Nachhaltiges Change Management. Springer Nature

Petry, T.Digital Leadership – Unternehmens.- und Personalführung in der Digital Economy. in Petry, T. (Hrsg.) Digital Leadership 1. Auflage (2016) Hauf-Lexware

Schirmer, U./Woydt, S. (2016) Mitarbeiterführung (3. Auflage). Springer Verlag

Schomburg, F. et al Paradigmenwechsel in der Führung – Zukunft ohne Management? In: Petry, T. Digital Leadership 1. Auflage (2016) Haufe-Lexware

Weibler, J. (2023) Personalführung (4. Auflage) Vahlen Verlag

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