Agility & Works Council: A Unique DACH Region Leadership Skill

Why collaborating with the works council is crucial for MBA graduates in the DACH region and how agile methods intersect with German codetermination.

Introduction: The Blind Spot in the Global MBA Curriculum

Global MBA programs prepare leaders for a complex world. Curricula are dominated by subjects like finance, strategy, marketing, and global supply chain management. Graduates learn to work in international teams, analyze markets, and guide companies through digital transformations. However, for a successful career in the German-speaking region—Germany, Austria, and Switzerland (DACH)—a crucial, regionally specific competency is often missing: the understanding of codetermination (Mitbestimmung) and strategic collaboration with the works council (Betriebsrat).

While agile methods and "New Work" concepts are globally considered keys to innovation and efficiency, in the DACH region, they encounter an established system of employee representation deeply embedded in corporate culture and legislation. For managers, especially those with an international background, ignorance of the role and rights of a works council can quickly become a career obstacle. Projects are delayed, innovations are blocked, and the trust-based relationship with the workforce is permanently damaged. This article examines why competency in dealing with codetermination is indispensable for leaders in the DACH region and how business schools should address this gap.

The Role of Codetermination: More Than a Legal Hurdle

To understand the challenge, one must first grasp the institution of the works council. In Germany, its role is comprehensively regulated by the Works Constitution Act (Betriebsverfassungsgesetz - BetrVG). Austria has a similarly strong framework in its Labor Constitution Act (Arbeitsverfassungsgesetz - ArbVG). While Switzerland also grants employees participation rights, they are significantly weaker compared to Germany and Austria, based more on information and consultation than on genuine codetermination.

A works council is not a trade union but an internal body elected by employees to represent their interests vis-à-vis the employer. Its rights are clearly defined and can be divided into three levels:

Information Rights: The employer must inform the works council comprehensively and in a timely manner about planned measures, such as personnel planning or major operational changes.

Consultation Rights: On topics like dismissals or the implementation of technical equipment, the works council must be consulted. The employer must consider its arguments but can ultimately make an independent decision.