… but is probably also the most German of all business titles?!
Today it’s time for a little provocative rant and to add some fuel to the “social media fire”. Lately, I’ve been a little annoyed by the term ‘hidden champion(s)’.
First, let’s take stock: What are ‘hidden champions’?
Wikipedia definition:
Hidden champions are relatively unknown larger companies […] that are market leaders in their industry. In smaller business areas, companies with fewer employees and turnover can also be “hidden champions”. […] Simon [Hermann Simon; editor’s note] defined the criteria for classifying a company as a hidden champion as follows:
- They are number 1, 2 or 3 in their industry on the world market, or
- number 1 on their home continent.
- Their annual turnover is usually less than 3 billion euros.
- They are hardly known to the public as they are usually owner-managed, not listed on the stock exchange and often serve a niche market.
For many companies, especially in the B2B sector, the honorary title of “hidden champion ” is an absolute accolade. After all, it includes two decisive factors. Firstly, commercial success. On the other hand, a certain kind of modesty, not pushing oneself into the media spotlight, but remaining discreetly under the proverbial radar. And there is definitely nothing wrong with the first factor. However, we should talk about the second factor on several levels in the 21st century.
The “media modesty” factor has recently taken on the flavor of “fake modesty” for me. A kind of typical German virtue of successfully completing your work but not talking about it, let alone bragging about it or peddling it in the media. Like when, after a long diet and many lost pounds, you are actually just eagerly waiting for someone to notice. But you would never brag about it yourself. But you actually want someone to notice – even men, you have to be honest at this point.
In the “media” 21st century, it is clear that this modesty can very quickly become pure poison for companies and is no longer in keeping with the times. Or as Frank Dopheide puts it:
Wie heißt der Chef von Henkel, Fresenius oder SAP? Fragen, die nicht viele beantworten können. Woran das liegt? An der fehlenden Kommunikation der deutschen Wirtschaftselite. Gerade in der aktuellen Krise wird sich das rächen, schreibt Frank Dopheide in seiner #MEEDIA-Kolumnne: pic.twitter.com/8tR5W8gVxe
— MEEDIA (@MEEDIA) April 23, 2020
Poison for (thought) leadership and agenda setting:
I believe that the combination of success and modesty is increasingly becoming a problem for the future of these companies. If you can’t be found, you don’t exist. Or to put it another way: if you are not visible, if you are not known and not trusted, you cannot take on a leadership function and therefore cannot initiate issues in society (keyword: agenda setting). However, people increasingly want companies and brands that are socially relevant. In other words, companies that contribute to the social discourse with discussions and their values and stand for something – see Nike. Hard cash for companies. Because according to a survey at the end of 2017, 74% of brands are irrelevant and therefore interchangeable.
Digression: Of course, there are also managers, CEOs and customers who do not want this. In their opinion, companies should make money and stay out of social issues. The financial mission and responsibility towards lenders and investors comes first. As Stephan Knieps clearly putit in Wirtschaftswoche when Siemens CEO Joe Kaeser commented on a political issue:
Managers manage money that does not belong to them and are employees of shareholders. They should actually first ask their shareholders for permission to comment on such extraneous issues. What Kaeser is doing is a massive breach of loyalty to our free economic constitution. He is encroaching in areas where no one has legalized him to raise his voice.
At this point, you might ask yourself why, for example, an automotive supplier that manufactures car parts such as seals and brake pads for Audi, BMW, Mercedes etc., which no customer ever sees from the outside, has to be visible in society? Admittedly, no one will choose an Audi because the supplier of the sealing rings is committed to equality and freedom. But when it comes to recruiting, young people in particular want to know what values their future employer stands for and supports. In this case, “hidden champion” also means “hidden” for high potentials and agenda setting that promotes success.
EDIT: Handelsblatt – 88 percent of German managers think that managing directors should position themselves politically.
Poison for marketing and social media:
The desire for low attention then – according to my further thesis – also has a negative influence in turn on the marketing (budget) and the attitude or professional use of social media. Back in 2017, Martin Limbeck wrote “No expert positioning without social media”. Social media (and of course other modern online marketing channels) are predestined for positioning as an expert and are perfect for taking a (social) leadership position as a company and initiating topics. See also: Successful agenda setting in social media
Unfortunately, many companies still don’t seem to have realized this. Social media managers in particular are often still caught between two stools and complain that their profession is not taken seriously within the company. A vicious circle!
And a challenge that has existed for years and has hardly improved. Social media is still seen too much as a toy for interns.
Diesen Tweet könnte man in Dauerschleife am 1. Jan. wiederholen.
— Ralf Bachmann (he/him/his) (@Baetschman_de) March 6, 2020
Spannend: Die Schere geht immer mehr auseinander. Während einige SM-Berater bereits bei Tiktok, Chat-Bots usw. angekommen sind, wird in manchen Unternehmen noch darüber diskutiert, ob sich SM durchsetzt.¯\_(ツ)_/¯ https://t.co/8gsfu1D4nl
Or how far can you ride a dying horse?
It’s still running! You could say. After all, you are already a “champion” in your industry. Why change a well-functioning system? Because times are changing – and faster and faster. Owner-managed ‘hidden champions’ – and I’m going out on a limb here – are often classic top-down companies. A “long-serving” patriarch (without meaning this negatively at this point), who has brought the company up and is perhaps already successfully managing it in the second or third generation, has done everything/much right in recent years. Unfortunately, time does not stand still. New generations of employees, new global challenges and new communication channels are literally knocking at the company’s door.
Young CEOs and young successors in family businesses demonstrate this media presence and use the various media not for clumsy “buy-me advertising”, but for modern, sustainable and socially relevant communication.
From a brand to a stand: brands articulate political attitudes and opinions beyond the background of lobbying interests and thus become a socio-cultural actor that has its sights set not just on the next quarter, but on the next quarter of a century. JAN DIRK KEMMING at https://blog.webershandwick.de/
Hidden champions (used to) do a lot of things right:
Are companies that are now considered hidden champions now bad, lazy, mendacious or something similar? Absolutely not!
Hidden champions have been and still are extremely successful – if you take a closer look at the definition from above. And even if you only come 4th or 5th, this is already world class in many areas. The point is that times are changing. Rules that used to apply are less and less valid today. And even if every industry has its own pace, the wind has already changed. Every CEO and company owner must be aware of this.
No false illusions: people are also talking about hidden champions:
And one thing must also be clear. The curtain has already been pulled back and the light is shining in. Now is the time for companies to open the window and decide for themselves what they want to show their neighbors ……
Final thesis: Perhaps the ‘hidden champions’ of today are the vanished companies of tomorrow?
