Aufstiegschancen: „Excel statt Exzellenz“: Drei Faktoren entscheiden, wer es in deutschen Firmen nach ganz oben schafft

In German companies, the rise of hidden recruitment searches by personnel consultants for executive positions reveals that boards and entrepreneurs doubt their top talents and are seeking replacements. Personnel consultant Nicolas von Rosty, the head of Heidrick & Struggles in Germany, says that many managers are waiting for the right moment, and some even enter a state of shock.

CEOs and business leaders hesitate to make bold decisions amid crises, trade conflicts, and artificial intelligence (AI), such as downsizing, relocating, or restructuring business models. Regardless of whether there is a lack of relevant experience or suitable personality, the consequences can be catastrophic when the wrong people are placed in key positions.

"Fehlerbelegungen an Schlüsselpositionen bremsen Organisationen aus," reports the source, as companies lose their competitive edge due to lack of courage in making strategic decisions or blocking changes. This results in falling productivity, innovation, employee turnover, and talent loss. Why does poorly suited leadership rise to the top and how can it be improved?

Managers, headhunters, and insiders explain that there are three important factors. Factor one: Career progression - Loyalty beats performance, and executive positions in Germany often result from internal promotions from team leader to CEO. Almost two-thirds of the DAX-40 CEOs were internally promoted, with BASF, BMW, Continental, DHL, Rheinmetall, RWE, and Zalando being just a few examples.

A striking similarity exists among the 231 resumes analyzed, with them being predominantly male, aged between 50 and 60, holding a business degree, and German nationals. Multiculturalism is less apparent. Many successful economic leaders have risen through internal promotion, but this career model is no longer ideal for several reasons.

"Internal promotions give extensive knowledge of decision-makers and traditions, but little exposure to alternative organizational forms or leadership concepts," says personnel consultant Norbert Graschi. As a former head of personnel development at Siemens, Graschi explains that internal promotions contribute to years of employment, good networking, and loyalty.

However, performance is often praised, but employees with diverse perspectives or new ideas rarely get the opportunity to contribute. For each promotion, consent from multiple superiors is required, preventing open opposition and diversity of opinions. This career model does little to prepare individuals for exceptional situations involving disruptive technologies, global crises, and increasing innovation pressure.

What needs to change are career paths and talent development. "Companies cannot always rely on internally appointed CEOs just because they have been on the horizon for years," says headhunter Nicolas von Rosty. External candidates should be given more consideration, and former employees who have gained new experiences as interim managers or entrepreneurs should also be given more chances.

Greater openness, including for managers who switch between corporations and small and medium-sized enterprises, can increase movement in the executive market, bringing more diversity, experience, and innovation. Factor two: Management versus Leadership - managing instead of leading. Many top managers are highly skilled professionally but lack the ability to lead employees effectively.

Gabriele Thiel, a manager from the automotive industry, describes how she was initially irritated by the perception of leadership as primarily management. Procedural control, budget monitoring, and adherence to predefined structures characterize management. However, this approach lacks inspiration, courage to change, and the willingness to create.

Innovation is often seen as a risk rather than a leadership responsibility. Fear of taking responsibility often outweighs the desire to shape the future. Thiel's explanation is that those who try to change things risk failure, so everything remains as it is. The vision, values, good employee communication are absent. The result is an executive circle where "Excel statt Exzellenz" prevails.