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Why organizations lead – not individuals

A systemic view of leadership

The systemic view of leadership: Why organizations lead—not individuals

In many companies, there are a number of persistent assumptions about what leadership is: leadership is employee management, leadership is what managers do, and top management is solely responsible for the future viability of a company.

But this perspective is too short-sighted—and it creates problems that we encounter time and again in change processes.

A systemic view focuses on something completely different: It is not the leaders who lead the organization—the organization leads itself.

Leadership is an organizational skill, not an individual talent. It arises from structures, routines, communication processes, and the interaction of many actors.

Why the classic concept of leadership is misleading

Those who want change often look to managers for causes and solutions:

“Managers simply have to lead better!”

This automatically gives rise to the idea of the heroic leader who knows everything, can do everything, and is responsible for everything.

The consequences:

  • Managers are under enormous pressure.
  • They are held responsible for things they cannot control.
  • At the same time, the organizational dimension of leadership is overlooked—the real steering wheel.

Because in reality, the following applies:

Even managers are managed.

You operate within the boundaries set by structures, rules, target systems, informal networks, and cultures.

What actually “leads” in organizations

Anyone who takes a systemic view of leadership will quickly see that:

Leadership happens all the time—even where no one has “leader” in their job title.

The following elements, among others, have a leadership effect in companies:

  • Target agreements and KPI systems
  • Structures and processes
  • Habits, routines, and meeting formats
  • Organizational culture and implicit scripts
  • Decision-making processes and escalation logic

All these factors influence people’s behavior – and thus control the organization.

Leadership therefore arises wherever communication processes prepare decisions, reduce uncertainties, set priorities, and enable action.

Leadership is teamwork – not a solo performance

A key component of a systemic understanding of leadership is the realization that:

A company is never led by individuals, but by leadership groups

And these teams often consist of more than just formally appointed managers. In every organization, there are people whose influence comes from other sources:

  • Popular figures
  • Long-standing employees with large networks
  • Informal advisors
  • Micro-politicians
  • Experts with indispensable knowledge
  • Gatekeepers at interfaces (internal and external)

Crozier and Friedberg identify four factors of power:

  • Possession of competence or specialist knowledge
  • Use of organizational rules
  • Control of internal communication and information flows
  • Control of relationships between the organization and its environment

Anyone who wants to lead must know who actually has influence—and why.

Why leadership teams don't work in many organizations

Although leadership should be a team effort, classic committees are often dominated by:

  • Competition
  • Rivalry
  • Silo mentality
  • Pressure to justify oneself
  • A focus on operational issues rather than future challenges

It is rare to find genuine teams that perform a joint leadership role.

But when it comes to questions about the future, top management alone is not enough.

It must engage in dialogue and discourse with other perspectives, departments, and centers of influence.

This requires:

  • Paradox competence (tolerating contradictions)
  • Ability to engage in dialogue
  • Cross-functional cooperation
  • Leadership teamwork
  • Clarification of informal power structures

First-order leadership vs. second-order leadership

A helpful distinguishing feature is:

  • First-order leadership: Work in the organization – operational, short-term, stabilizing
  • Second-order leadership: Work on the organization – reflective, future-oriented, creative

Many managers are so caught up in day-to-day operations that they have hardly any resources left for “second-order” tasks.

But this is precisely where future viability arises.

Effective second-order leadership requires:

  • clear spaces and formats
  • distributed responsibility
  • shared awareness of problems
  • joint work on the leadership system
  • cross-functional leadership structures that exist in parallel to the operational organization

When organizations lead themselves: Leadership as a monitoring function

From a systemic perspective, leadership is a control function that continuously ensures the survival of the organization.

This includes:

  • Regularly asking relevant questions
  • Addressing areas of uncertainty
  • Gathering signals from the environment and the market
  • Evaluating future options
  • Preparing decisions

A company should therefore ask itself:

1. Who are the most important leaders – and how can we recognize them?

(Formal and informal)

2. How does leadership communication work?

(Official channels, shadow organizations, informal networks)

3. What leadership tools are available to us?

(Goals, structures, culture, processes, rituals, etc.)

4. What is our leadership culture like?

(Where are emotional reactions occurring? Where is there capacity for reflection?)

5. And what else influences our management system?

(Ambiguities, taboos, power games, blind spots)

Those who answer these questions will understand the organization’s leadership system – and can shape it in a targeted manner.

What specific tools companies need

To design leadership systemically, the following is required:

1. Cross-functional management collaboration

Shared responsibility across departmental boundaries.

2. Designing leadership teamwork

Real teams instead of committees.

3. Working together on the organization

Regular opportunities for reflection and decision-making away from the hustle and bustle of day-to-day operations.

4. Holistic view of organizations

Away from focusing on individual employees – toward looking at patterns, structures, and interactions.

FAQs on the systemic view of leadership

Are managers then superfluous?
No. But their role is shifting: away from operational decision-maker, toward process designer, listener, networker, and moderator.
How can I recognize informal leaders?
Through influence analysis: Who is often asked for advice? Who is listened to? Who shapes opinions? Who sits at the interfaces?
What is the biggest hurdle to systemic leadership?
The belief that leadership is an individual talent rather than an organizational skill.
How do I get started as a business?
With a diagnosis of the management system based on five key questions: stakeholders, communication channels, management tools, management culture, and blind spots.

Takeaways

  • Leadership is not an individual skill—it is a characteristic of the organization.
  • Structures, routines, goals, culture, and communication channels are more influential than managers.
  • Sustainability is not achieved through heroism in top management, but through cross-functional leadership teams.
  • Informal actors shape leadership just as much as formal roles.
  • Managers must be able to listen, hold good conversations, and share responsibility.
  • Systemic leadership means viewing the organization as a whole—and working on it together.