The order of the day: Lateral leadership, i.e. leadership without formal authority. The demands on performance and quality are rising. The time budget is decreasing. This is how managers face a dilemma: more results despite fewer resources. They are tempted to exert pressure to ensure that they and their teams achieve their goals. At the same time, organizational structures are weakening and hierarchies are being dismantled. In the wake of this process, supervisors are in fact becoming more and more like project managers. They can no longer fall back on their superior function. Their position of power is eroding. This raises the issue of how it is possible to have authority without being authoritarian. How can employees be induced without pressure?

What is lateral leadership?

Lateral leadership – derived from the Latin word “latus” for “side” – is not a revolutionary new concept. It has been used for many years by most organizations. Lateral leadership means “Leading from the side“. This is always the case when people lead the teamwork in teams without being higher up in the hierarchy or having the authority to give instructions. In such situations, lateral leadership is usually the instrument of choice to achieve a common goal. Lateral leadership is therefore responsible for the outcome of a project or task without being in charge of the team from a disciplinary point of view. It is not about “secretly” or informally influencing colleagues. Lateral leadership is also an “official” form of leadership. Generally, someone with lateral leadership tasks has a concrete assignment, which is usually linked to a clear expectation of results.

Das Konzept der lateralen Führung

Increasingly, projects are being implemented outside the traditional corporate hierarchies – in cross-departmental or even cross-company teams that are put together on the basis of individual skills. Often, such teams do not have a disciplinary “leader” as such. In such situations, a lateral leader is responsible for the project results without being the team’s supervisor. Employees who are responsible for the outcome of a project or task without having authority in regards to the discipline of their team should have the following skills:

• be familiar with the concept of lateral leadership, which is becoming increasingly important today
• know the differences between lateral and disciplinary leadership
• understand how leadership works, even without disciplinary power
• have tools at their disposal and use them optimally
• deal constructively with possible conflicts

Where do the differences between lateral and disciplinary leadership lie?

According to Max Weber, power means: “the possibility of asserting one’s will against that of another” Applied to the world of work under the guise of disciplinary leadership, this means:

• superiors have the power to issue directives
• They control the working time and the agreements of the employment contract: Does the employee implement the contract as agreed?
• They check the quality of work of the individual(s) and the team
• They take disciplinary action against undesirable or disruptive behavior of employees, for example by issuing a warning.
• They deal less with the professional issues of their employees.
• The power of the supervisor is rooted in their position. In addition, they have access to resources and distribute these. Employees who veer from the expected behavior must expect sanctions.

In contrast, lateral leadership relies on the voluntary commitment of employees. Leaders try to establish trust, understanding, cooperation and a common framework of thinking while balancing the different interests.

Three important tips that will be decisive for the outcome of your project

• Define your role
• Define your tasks
• Define your powers

Are lateral leaders toothless tigers?

This question uncovers a certain image of man. Anyone who assumes that people do not work without pressure may unconsciously hold a pessimistic view of human nature: people are naturally lazy and selfish. Without pressure, a person will not perform. Employees must at least be guided and sometimes forced to work. No employee takes on responsibility voluntarily. The individual psychologist Alfred Adler made the opposite assumption: Man is a social animal. He strives for prestige in his group and is therefore willing to cooperate and take responsibility. According to his observation, man finds satisfaction in his work. He is by no means averse to work; on the contrary, work helps him to realize himself. According to this theory, managers are primarily responsible for creating a performance-enhancing work environment Their mission is to create a setting in which people want and can work. Employees, for example, want respect, responsibility and a minimum of flexibility and self-determination. So they are willing to identify with the goals of their organization.

If they are unwilling to cooperate, the causes are in the work environment or they have had bad experiences in the past.

Nine important tips for your self-assessment

• Be aware of the differences between disciplinary and lateral leadership.
• Use different ways to lead and influence your team – regardless of their position in the company hierarchy.
• Develop a clear understanding of your role and responsibilities as a lateral leader.
• Officially communicate your role and responsibilities as a lateral leader to the team.
• Define clear goals and expectations for your project.
• Make it transparent for everyone in the team who is working on which task and how far he or she has progressed with it.
• Set clear rules for your teamwork.
• Make clear agreements with the disciplinary superiors of your team members on how much working time they can spend on your project.
• Deal constructively with conflicts in the team or with disciplinary superiors.

Why lateral leadership is becoming more important

The need for lateral leadership is increasing because the world of work is changing. In recent years, the way we work together has changed dramatically: Employees and experts work in increasingly complex project structures.

• Companies are dismantling hierarchies, structures are becoming flatter.
• Professional and disciplinary management is often separate.
• Companies organize themselves in matrix structures.
• In general, the project aspect of work is increasing.
• In the VUCA world, the boundary conditions change so quickly that solutions often have to be found in a circle of experts, e.g. agile project management. This is why employees and external staff, sometimes even employees from neighboring companies, come together in the work teams.

None of these scenarios speak in favor of the classic disciplinary approach. Add to this the cultural change – employees have become more self-confident. The attempt to exert pressure is met with incomprehension, especially among younger employees. The self-image of employees has changed: They want to get involved and perform. They know that their skill is needed. Why should they let themselves be treated like reluctant subordinates?

Three important examples of application areas

• Inter-departmental projects to find solutions to complex problems.
• Inter-company projects to manage even very large, demanding and capital-intensive projects.
• So-called supply-chain-projects, to optimize processes along the value chain.

Sehen Sie sich einige Beispiele in diesem Auszug aus dem E-Learning “Laterale Führung – wirksam führen ohne Vorgesetztenfunktion” an:

The most important instrument for lateral leadership

Lateral leadership derives its effect from removing obstacles to work and building motivation. It thrives on commitment, trust, good communication and knowledge of human nature.

Balancing interests

Lateral leadership focuses on balancing interests as much as possible. Leaders benefit from knowing their employees, as well as their wishes, motives and skills. In this way, they can respond to these and use their employees optimally according to their abilities. Adjusting screws are, for example:

• Building positive relationships with staff and within the team.
• Recognizing performance
• Creating a pleasant working atmosphere.
• Equipping the workplaces properly and provide the necessary equipment.
• Assigning interesting tasks and responsibilities.
• Absorbing external pressures and power.
• Building up competence and expertise.

Building motivation

Different people can be motivated in different ways, depending on their personality structure: some appreciate being on stage. Others get absorbed in detail work and analysis. Others love teamwork. Lateral leadership therefore requires a genuine understanding of human nature in order to make meaningful use of employees according to their personal inclination and skills. The task is to meet the employees’ professional and personal needs as far as possible so that they voluntarily give their best.

However, conditions are not always suitable. There are always unpopular tasks in a project. Managers should address their staff in this order:

• Deal: Rewards if the task is fulfilled as desired.
• Support relationship with employees: What are your personal reasons for engaging the employee in the leadership?
• Insight and duty: Appeal to the employees’ sense of duty.
• Control: Involving the next highest superior.

Managers should address their employees in this order. When disruptions arise, it is important to document the course of the conversation, announce a possible escalation in good time and, where necessary, consistently take action.

Seven important tools for you as a lateral leader

• Develop a project vision
• Agree on goals
• Define rules on cooperation
• Schedule regular meetings
• Design an overview of all tasks
• Use virtual platforms
• Schedule in presentations for all participants

Wichtige und praktische Führungswerkzeuge stellt Ihnen dieser Auszug aus dem E-Learning “Laterale Führung – wirksam führen ohne Vorgesetztenfunktion” vor:

The most common conflicts in lateral leadership

Critical feedback

Criticism is sometimes necessary. But no employee enjoys being criticized. Criticism means someone has done something wrong. Those who have to accept criticism often feel small and humiliated. In lateral leadership, managers must always bear this in mind. To ensure that criticism leads to the desired result and causes little damage, leaders should follow these tips:

• Make your criticism promptly and discreetly, but never in front of other colleagues.
• Weigh the costs and benefits: What can really be gained?
• Review your own assessment.
• Properly dose the criticism.
• Ask for the self-assessment of the person criticized.

Behavioral change

A second source of conflict is desired behavioral change. Disciplinary senior staff have the necessary means to do this: the performance review, the agreement on objectives or the ongoing monitoring of results. Lateral leadership does not have these instruments. Moreover, managers and employees often only work together on specific projects. The continuity of cooperation is correspondingly low. What is the reason for the undesirable behavior? Is the employee unaware? Can’t they, or do they not want to, do the task? Finding this out is the first step. Then the manager can intervene in a targeted manner – they can lead their employee according to their level of maturity or try to motivate them.

Conflict of interest

There is a long list of possible types of conflict: conflicts over goals, conflicts over evaluation, conflicts over distribution, personal conflicts, conflicts over relationships and roles. In lateral leadership, the risk of the manager getting caught in the middle is high. In lateral leadership, the key to success lies in engaging with employees, negotiating skills, and conflict resolution skills. Good leaders succeed in getting employees to pull together voluntarily. Consequently, leaders should be well trained in conflict resolution strategies.

Five important tips in conflict management

• Identify the causes
• Make your own experience clear
• Make clear agreements
• Conduct individual discussions
• Agree on joint appointments

Lateral leadership – leading effectively without an official supervisor role

Do you want to prepare yourself and your employees for your role as a lateral leader? Take a look at the “Lateral Leadership – Effective leadership without an official supervisor role” e-learning course. The multimedia and video-based e-training course contains a professional learning moderator, explanatory videos, realistic drama scenes, learning questions and transfer tasks, as well as a summary of the key messages and a final test. Do you want to see it for yourself? We will give you free trial access to our to our e-learning library as a human resources manager.