In the interview with Florian T. Hochenrieder, COO and Stephan Müller, CEO at M² Business Consulting
M² Business Consulting is a company founded in 2013 and run by its owners, based in Pullach near Munich. The company’s focus is on helping medium-sized and large companies optimize their digital customer relationships. M² Business Consulting supports customers in planning and implementing product, target group, marketing and sales alignment and assists with the digitalization of sales processes and customer communication. The services are delivered through the segments Strategy, Concept Development, Implementation, Change Management and Digital Leadership, combined in the right mix and accompanied by process and agile project management. So here you have exactly the buzzwords or, in modern parlance, buzzwords that keep cropping up in many discussions, on the internet or at presentations. In an interview with Florian T. Hochenrieder and Stephan Müller, we discuss the limits of consulting, the challenges of transformation and take a look ahead at leadership in the digital age.
DIGITAL FUTUREmag: Gentlemen, for example, as a managing director or specialist and executive at a medium-sized company, you are literally bombarded with buzzwords – short phrases designed to grab your attention. This often has the opposite effect to the original intention. What are your experiences when you first come into contact with company decision-makers and discuss such terms?
Florian T. Hochenrieder, COO: In general, I have personally experienced and learned that true and above all effective excellence lies in simplicity. In the spirit of Einstein: “Make things as simple as possible, but not simpler.” This applies to initiating optimal cooperation with a desired customer, during targeted analysis and when developing a brilliant concept. And it also applies to any communication and implementation together with customers and stakeholders – clever simplicity, clear messages and a shared understanding of the situation and the real need for action are key. That’s why I place great emphasis on this from day one when working with the management or the client. The common goal is always to quickly translate buzzwords into levers of impact.
Stephan Müller, CEO: I find the term “buzzwords” rather derogatory, since these are only used to give a promising and sometimes complex methodology a name. Based on our experience, we therefore do not focus on “buzzwords” in customer meetings, but instead ask the client to describe their challenges first and then discuss possible scenarios. Whether we call this digitalization or using levers of impact in digital times is secondary.
DIGITAL FUTUREmag: Could you put these terms into a logical sequence for us? Where is it worth starting?
Stephan Müller, CEO: I think that’s precisely the problem: namely that people are mainly looking for an order of priority and all too often lose sight of the question of what they want to achieve with digitalisation. Since outstanding customer value in digital times is our focus, the question for us is not which “buzzword” is right, but rather which lever is best for sustainably improving the digital customer relationship.
Florian T. Hochenrieder, COO: Exactly. A results-oriented consultancy begins with an adequate analysis. This aims for strategic clarity of the situation and a shared understanding of the intention, the driving factors, as well as the risks and opportunities that arise. It is also essential to have clarity about terms, goals and the big picture. What does “digitalisation” mean? One definition could be: “Measure everything. Predict everything. Improve everything. Whereby ‘everything’ refers to the right things within the company that need to be implemented correctly.” Another example is “intention”. This could, for instance, be to create measurable added value for customers and partners, grow profitably and authentically inspire and loyally bind customers, partners and employees. The sensible order of steps following the analysis includes a differentiated strategy, a tailor-made concept, particularly effective implementation and effective transformation with digital leadership, continuous process optimisation and (truly) agile project management.
DIGITAL FUTUREmag: If so many companies don’t know exactly where their strategic digitalisation journey should go, how do you start such a consultancy process and what might the following steps look like?
Stephan Müller, CEO: For us, there are three key pillars of the digital journey: the ability to inspire, performance and future viability. To this end, we have developed a clear structure with nine fields of action. On this basis, our customers can precisely identify where action is still needed and which lever offers the greatest impact to best start the digital journey.
Florian T. Hochenrieder, COO: Our customers particularly appreciate that, from the very first point of contact, we combine the classic, proven steps of analysis, strategy, conception, implementation, transformation and effective leadership with agile methods and problem-solving, as well as best practices from the champions, to deliver measurable impact while remaining empathetically grounded. For example, we draw on impulses from Design Thinking, where the in-depth understanding of the customer’s actual situation and challenges is the focus, and an optimal solution is approached in an iterative manner. This solution is further refined in short cycles and optimised through a interplay of prototyping and testing to create an ideal solution. In doing so, we work hand in hand with our customers to implement so-called “ambidextrous” leadership and solution approaches that optimally combine the best methods from the past, present and future.
DIGITAL FUTUREmag: What do you think are the biggest hurdles for companies to embark on digital transformation?
Florian T. Hochenrieder, COO: The biggest hurdle that prevents or causes digital transformation to fail lies in decision-making and implementation weakness. Unfortunately, it seems we have unlearned at many levels to make the necessary decisions quickly and to implement them persistently and purposefully. I perceive this decision-making and implementation weakness at all three levels of attitude for successful change: the level of the individual actor, the people involved, and the organization itself. It is essential that company management and every individual leader and specialist systematically work on building the right mindset, skillset, and toolset to master and shape the digital age with decision-making and implementation strength.
Stephan Müller, CEO: I fully agree that the internal attitude is the biggest hurdle. In fact, I would go so far as to say that it is primarily arrogance that prevents the start of digital transformation. Too many entrepreneurs are fooling themselves about the current situation and are firmly convinced that they, in particular, do not need digital transformation—often their order books are full, business is running smoothly, and the added value of a website is not recognized. However, digital transformation is not just about websites and social media accounts; above all, it is about laying the foundation today to still have full order books and market shares tomorrow.
DIGITAL FUTUREmag: Where do you, despite extensive know-how, encounter limits that prevent the company from developing in the desired direction?
Florian T. Hochenrieder: One limit lies in internal and external circumstances. Therefore, situation analysis is crucial to optimally manage internal and external risks and weaknesses and to take advantage of the opportunities that arise. Another limit lies in the potential of people and the organization to consistently and effectively persevere in the change to sustainably install it as a culture. The right habits must be established, and new and optimized processes must be solidified. And yes: the will decides!
Stephan Müller, CEO: Digital transformation is an unfair game in which unexpected challenges arise, such as legal hurdles that can delay a project by years—where, as already mentioned, perseverance and willpower are required. In addition, a partner with foresight must exist who can recognize such situations early and thus avoid or shorten them. Another, unfortunately sad point is that many digital transformation projects are started without first putting the products and services to the digital test. In this way, many companies with new digital processes are far off the mark when it comes to customer needs.
DIGITAL FUTUREmag: What recommendations would you give when looking at years of experience in leadership, particularly “leadership in the digital age”?
Stephan Müller, CEO: Since Mr. Hochenrieder is an absolute expert in leadership, I don’t want to add much at this point. My recommendation is to seek external support for leadership in general and digital leadership in particular, which works with company management from the outset to create the right strategy, structure, and culture.
Florian T. Hochenrieder: We cannot not lead. In digital, analog, and hybrid times, it’s about not getting lost in buzzwords when it comes to leadership, but acting wisely, courageously, and calmly. Acting to advance the common cause. Acting to continuously create compelling added value for customers. Acting to inspire and retain employees, customers, and partners in the future. Leadership is neither an old nor a new phenomenon. What matters is: leading by example! For me, the key is to leverage the best of the past, present, and future in the respective context.
DIGITAL FUTUREmag: Finally, a brief outlook on AI and blockchain. Will Germany, with its SMEs, be able to keep up with international competitors in particular?
Florian T. Hochenrieder: Now is the time for decision-makers and decisions. If German SMEs and equally German corporations commit clearly to the opportunities of digitalization and use them visionarily and highly effectively, then everything is still possible. Yes, we will not only keep up but even take the lead in some areas, in the spirit of “Made in Germany.” The key is to identify relevant use cases, monetize them, and develop them boldly to create, maintain, and expand a potential lead. Smart and jointly value-creating alliances and co-opetition can also help here.
Stephan Müller, CEO: If we don’t act soon, the lead of international competitors will be impossible to catch up with in the next two to three years. What I observe is that SMEs, but also DAX-listed companies, are primarily trying to optimize existing and established processes and have forgotten how to think innovatively. International competitors, in particular, are happy to break with what we currently define as standard and use AI and blockchain from the outset in the best possible way, allowing them to achieve exponential advantages. Personally, I believe that in the future, blockchain and AI will be as essential and natural as the use of smartphones is today, as well as our invisible companions in an optimized digital everyday life.
DIGITAL FUTUREmag: Thank you very much for this inspiring, constructive interview.