Hidden champions lead the global market – in secret
Uniglobale spoke to Prof. Hermann Simon about what “hidden champions” mean for today’s students.
Have you ever wondered who developed the retractable leash for your four-legged friend? Or where does the curtain come from that you see fall after every theater performance? Has it ever occurred to you that someone has to make the paper clips that are so often used in everyday work? Probably not. The manufacturers of things that are so often used or seen usually operate in the background, unnoticed by the public. And yet many of these companies belong to the top of the world market - they are the hidden champions of the global economy.
UNIGLOBALE: Prof. Simon, what opportunities do career starters have if they join a hidden champion?
HS: Companies that are among the hidden champions offer interesting and international assignments to career starters. Due to the comparatively small number of employees, you have direct access to core competencies and can expect to take on responsibility early on. All of this leads to rapid opportunities for advancement; the bosses of these companies are usually in their thirties.
What company structure awaits a career starter at a hidden champion?
HS: An interesting point for applicants is that management in these companies is ambivalent. That is, it is authoritarian in principles and core values but more participatory in its execution. Where large companies, for example, publish a separate manual for every small regulation, the hidden champions act depending on the situation. This allows you to concentrate on the essentials. I experienced that at a hidden champion the travel expense regulations only consisted of a single sentence: “The travel expenses for each employee should be as much as they would spend on their private trip.”
In your book you write about the departure of the hidden champions to Globalia. Given these new conditions, are there any tips you can give to those starting out in their careers?
HS: It is important to prepare for Globalia. Learning languages and gaining international experience are of great importance. The most important priority to prepare for Globalia is to have a perfect command of English. It's rather pointless to know a little about three languages. It is better to learn excellent English through longer stays in English-speaking countries.
What role does the Internet play for the hidden champions and career starters?
HS: Young people are facing a whole new world with the internet. It offers the opportunity to build a worldwide network and keep it alive. This makes young people particularly interesting for companies because they have grown up with the Internet and have mastered the technologies.
What can large companies learn from the hidden champions?
HS: Almost everything is different in large companies than in the hidden champions. 25 to 50 percent of Hidden Champions employees have regular customer contact, while at large companies it is only five to ten percent. There are also important differences when it comes to innovation: Hidden champions register 31 percent of patents, of which 80 percent are actually used in the products. In large companies only six percent are registered. The innovation process works completely differently for the hidden champions: small teams are assigned to a problem and work on a solution. In large companies, on the other hand, a specific budget is allocated to a problem.
Which example of a hidden champion impressed you most during your research?
HS: One example is the company Igus from Cologne, which is twice the market leader in plastic plain bearings and so-called energy chains. 2,000 employees work in this company and it is growing like crazy. Your strategy is modern leadership. Here, every employee, from interns to bosses, wears the same uniform and uses the same dining rooms and toilets. Attention is also paid to being extremely close to the customer; for example, there is a rule that an employee must never say “no” to a customer until they have discussed it with the boss. Most requests that would otherwise be lightly dismissed with a “no” can still be processed and implemented. As a result of this regulation, the employees automatically pay more attention to customers' problems and take more intensive care of their needs.
Cover photo: iStockphoto/Michael blann.
Related articles:
- Improvisation talent is in demand in China
- From working students, barbecues and permanent positions
- Already have contacts today?
Hidden champions lead the world market – in secret Uniglobale spoke to Prof. Hermann Simon about what “hidden champions” mean for today’s students. Have you ever wondered who developed the retractable leash for your four-legged friend? Or where does the curtain come from that you see fall after every theater performance? You've already had it
