Germany – understand-culture

New media – New political parties

Before the Internet offered new ways to communicate, small political parties in Germany had barely a chance to make it into the Bundestag, or parliament. By law they have to receive at least 5% of the vote.

Each and every political party receives government subsidies to finance their election campaigns, but based on how many votes they get. The more votes received, the more money to run campaigns. The problem for new parties is that they have to first finance their campaigns out of their own pocket in order to gain any degree of name recognition.

Traditional modes of political advertising are simply too expensive for start-up parties. They can never get enough voter momentum to receive significant amounts of money from the government. A catch-22 situation, or chicken and egg situation.

The rules of the game have changed, however, with the Internet: Facebook, Twitter, and other kinds of social media. Now small, unknown parties like the Piratenpartei, literally Pirate Party, are able to compete with the major, long-established political parties: Christian Democrats, Social Democrats, Free Democrats, Green Party.

The Fractal Factory

In 1995 Hans-Jürgen Warnecke, Head of the Fraunhofer Insititute in Munich from 1993 until 2002, published the anthology Aufbruch zum Fraktalen Unternehmen: Praxisbeispiele für neues Denken und Handeln – loosely translated as Breaking out into the Fractal Company: Concrete Examples of New Thinking and Acting.

Warnecke instantly became known in the production world both in Europe and internationally. The book takes a deeper look at manufacturing processes addressing questions such as: On what principle are production processes based? How does change best occur in material flow processes? How can the quality of processes be improved?

Prof. Thomas Bauernhansl from the Institute of Industrial Manufacturing at the University of Stuttgart underscores the ongoing importance of Warnecke’s work:

“The concept of the fractal factory, which Hans-Jürgen Warnecke proposed in the 1990s, remains highly relevant and meaningful today for manufacturing companies. The visionary power of his organizational model can be seen at work in agile and flexible production structures.”

Klaus-Hardy Mühleck, considered one of the top experts among CIOs, stresses time and again the influences of Warnecke on his work.

Process-Pope

Klaus-Hardy Mühdeck, current CIO of ThyssenKrupp and former CIO of Volkswagen, is considered Germany’s Prozesspapst – literally process-pope. He is the first CIO to change his title to Chief Process Officer.

In an interview with Computerwoche – Computer Week – in 2006 Mühdeck described his fascination with process management:

“Processes network functions, no more and no less. Throughout my entire career I have been involved in processes. In most companies it is under the board member responsible for strategy. But the trend is clear. CIO’s are defining processes and systems.”

It is the CIO, says Mühdeck, who is the bridge between the demands of the company and the systems platforms and company-internal processes. CIOs need to be able to communicate with and understand the areas of development and manufacturing.

You can only truly understand a company’s processes if you understand how the various functions and departments actually work.

Processes and Communication

In the American business context the communication within and during a process is very important. In fact, the forward movement of a process is dependent on communication. Parties involved in the process must remove roadblocks, anticipate slow-downs. The process may not come to a halt.

Constant communication is the prerequisite for quick response time. Constant communication also secures a common understanding of the process’ goals. It motivates. Feedback within the process is given on a regular basis.

Not to be underestimated is also the value of communicating interim results upwards, to those on the next level of management who exert influence on the process in general, and who might also be the recipient of its ultimate results.

East meets West

In October 1990 the two Germanies were reunited. East Germany became a part of West Germany. Most of what the East Germans were familiar with disappeared overnight.

Social rules, attitudes and opinions, cultural life, recreational habits, all of these began to change. East Germans had to adapt to a German spoken differently. People greeted each other with a „Hi!“. They ate chicken wings instead of broilers. Pepsi and Coca Cola was substituted for the East German Club-Cola. Colleagues worked in teams instead of in collectives.

East Germans had to quickly adjust. They had to become wary of shifty West German „deal-makers.“ Appliances, machines, automobiles, telephones, etc. worked differently, were confusing. An entire society of over 17 million people had to suddenly adjust to the rules of another society.

The change was difficult and confusing for the East Germans. In every sense of the word they were at a disadvantage over and against their new fellow German citizens. The rules – the processes – were not theirs, not East German. They were West German.

Rules of the Game

Those who write the rules of the game, have the best chance of winning the game. Processes – how the work is done – make up the rules of the game. Within companies. Where the product is critical to success. Where “a better mousetrap” really can, for the most part, sell itself.

Let’s march it backwards. Customer. Product. Manufacturing. Product development. Science and engineering. German. The core is science and engineering. In Germany scientists and engineers are king. They enjoy the prestige. Herr Dr. Soandso. Even better, Herr Professor Dr. Soandso.

Let’s march it backwards. Customer. Solution and profitability. Problem and pain. Relationship management. Sales. Marketing. American. The core is understanding the market, maintaining a constant close relationship with the customer, understanding and meeting needs. The customer is king. Those close to the royal court are king-too. They enjoy the prestige. The insider. The trusted.

Germans want to have the say about process, about how the work is done. For them it is make or break, success or failure. It’s the name of the game. Americans are happy to concede it, as long as the Germans concede to them the customer.

Mistaken thinking, or at most half-thinking. On both sides.

Process as Power

If processes govern the inner workings of a company, whoever has the say about those processes determines how the work is done. Germans strive to have the say about processes. Examples

Process as Power

German Approach

If processes govern the inner workings of a company, whoever has the say about those processes determines how the work is done. Germans strive to have the say about processes. Examples

American Approach

Because Americans are less inclined to view processes and procedures as governing the inner workings of a company, having the say is seldeom the forum where battles over power and influence take place. Examples

American View

The more that success is based on the relationship with the customer, the less important are the disiplines develoment and manufacturing.

Germans don‘t understand the primacy of market orientation. Americans, therefore, are less concerned about Germans having the say in that area.

German View

The more that success is based on the product itself, the less important are the disciplines sales and marketing. Americans don‘t understand the primacy of product. Germans, therefore, are less concerned about Americans having the say in that area.

Advice to Germans

You Germans and Americans are colleagues. Get out of the power and influence game. If processes are crucial to success, convince your American colleagues to remain involved. Don‘t make the mistake of creating processes without total transparency and involvement of your U.S. colleagues.

Otherwise you‘ll produce German processes which don‘t work in the U.S. Your American colleagues will not implement them and make convincing arguments to upper management why. You‘ll lose that battle. It‘ll be painful.

Advice to Americans

Whether you think it important or not, get engaged in the internal debate about processes. To prevent it from devolving into a power struggle, demand full representation, full transparency and full accountability.

While involved, avoid being drawn into skirmishes. Focus, and keep your German colleagues focused, exclusively on those processes which improve performance and the bottom-line.

At the same time, get your German colleagues involved in your strategic thinking about how you go to market. Give up some of that power.