Frugal

Germans are very conservative with their resources. Waste is proof of poor and improper work, which has lost sight of what is important. This is why decision-making processes should incorporate a clear and well-defined plan for resource management.

The process of making a decision requires its own resources as well, (work, materials, time, etc.) and takes place in a context which is very much confined by the resources available, resources which must also be calculated into the process implementing the decision.

The German figure of speech ‘Not macht erfinderisch‘ – need makes one inventive – is a fitting: Being in need may lead one to become more creative and discover hidden connections, but it also enforces disciplined and effective use of available resources. These frugal tendencies strongly complement a process-oriented approach; both tendencies are different sides of the same coin.

A further important point of contrast becomes clear, when considering that the conservative use of resources also reflects a desire to keep things in balance. One doesn’t want to go rushing off in the wrong direction, ‘alles auf eine Karte setzen‘ – to bet it all on one card. Rather, one should always view important decisions within the economical context of labor and resources in its entirety. He or she who can ‘make more from less’ has successfully internalized this defensive principle.

Resource Comparison

If America represents a society of excess, then Germany can be viewed as representing one which may not have deficits, but knows its limits. 

The U.S. has 15x as much natural gas, 5x as much crude oil, 4x as much coal, and 5x as many renewable water resources. And the list goes on. 

In the year 2000, the annual use of gasoline per capita in the USA was 1,633 liters versus just 450 in Germany, electricity use was 13,672 versus 6,680 kwh.

As far as space is concerned, the numbers grow incomperable. With its 9.63 million km², the U.S. is 27x larger than Germany with its 357,000 km². 

The state of Texas alone is nearly twice as large, having 678,000 km², California with 411,000 km² and Montana 381,000 km². My home state of Pennsylvania is already 1/3 the size of Germany with its 117,000 km².

All of this impacts the population density. In Germany, an average population density per km² is 231, in Northrhine-Westphalia, the most populous state, that number more than doubles to 530. 

In the U.S., the figure lies at a mere 31. But let us examine the development o fthis number over the past 200 years: in 1800, there were 2.5 people per km², in 1850 3,5/km², 1900 8,0/km², and by 1950 still only 17 persons per km².

Decision-timid

Enscheidungsscheu – literally decision timid. In simple English: afraid to make a decision.

„Mit dem Kopf durch die Wand” – trying to go through the wall with their head. Impatience. „Die Hausaufgaben nicht gemacht” – haven’t done their homework. Aktionismus. Actionism. Cowboy mentality. 

Germans see these as American tendancies, and believe that they are based on a lack of training, technical competence and methodology. “They simply have not learned these things,” is their explanation.

On the other hand, Americans view the German approach as time-consuming and academich-philosophical. German decision making can come across as decoupled from the goal which is to take. Germans, from the American perspective, take subjective factors too little into consideration. Their analysis is too complex, going well beyond the needs for making a decision.

Americans see their German colleagues as overly careful, far too scientific and schematic-tool oriented. They are reluctant to consider input based on experience and common sense.

Germans give the impression of striving to complete the perfect analysis, which in turn should be some kind of guaranty for the perfect, and therefore risk-free, decision. All of these are signs to Americans that their German colleagues in the end are simply afraid to make the tough decisions.

Frederick August the Procrastinator

Frederick August, the King of Saxony, was one of history’s great procrastinators. While he began as one of Napoleon’s greatest foes, he soon became his greatest ally. In return, Napoleon elevated him from prince elector to king.

But by 1813, his alliance with Napoleon would cause him to lose the Battle of Leipzig. Though Frederick August was careful in attempting to side himself with the great forces who opposed him, a treaty that he had made with Austria eventually dissolved. Taken into captivity by the Prussians, Frederick August was forced to turn more than half of his territory over to his archrivals.

But why was Frederick August on the losing side of the Battle of Leipzig? Historians consider him to have been incapable of making decisions. He is credited with coining the phrase “no decision is better than a bad decision.”

During the revolt he spent his time sitting almost apathetically in the basement in the city hall of Leipzig. To add to the confusion, Frederick August was an exceptionally unpredictable monarch; very few rulers changed their mind so often.

Not only was he incapable of making decisions, but as soon as a decision was made it essentially would have lost all meaning in the moment of its creation, having already been undermined in significance and seriousness by the probability that Frederick August would again change direction.

Three inches high

Horst Brandstätter, the founder of Playmobil, dies at 81.

“Although a billionaire by the end of his life, he was a world champion in economizing, the younger Mr. Brandstätter (son Conny) said, citing as an example his father’s insistence on using cheap packs of cards for his favorite card game.

Mindful of his cash flow as the world oil crisis drove up the cost of plastics in the 1970s, Mr. Brandstätter summoned his chief designer and asked him to come up with toys that would use less plastic.

Mr. Beck came up with Playmobil, whose miniature models and environments are said to have been inspired by children’s drawings and the figurines of traditional Christmas crèches. At about 3 inches high, the figures have round faces, movable arms and legs, and hands that can grasp a pirate’s sword, a carpenter’s saw or a firefighter’s hose.”

Source: New York Times, June 11, 2015. By Alison Smale

Fragestellung

Fragestellung is literally a question formulation. It is the definition of the question to be addressed. Before Germans make a decision – answer a question – they place great effort into first being sure that they have a common understanding of the decision to be made, of the question to be answered.

From the German point of view it is not enough to be capable of making decisions, to answer complex questions intelligently, if you haven’t first defined accurately the decision to be made, the question to be answered.

Germans engage in a discussion upfront about: What is the nature of the decision we are about to make? What are its implications for other areas of our work? Are we addressing the right question? Are we in agreement about what decision we are making and why?

Schmal (narrow): Old High German smal: small, narrow; narrow in width, as seen in profile; little, few, not enough, bare, barren.

Breit (wide): Of greater length in profile; as in size(s), measurements, a certain width; large, stretched; in large measure.

The German word schmal is often used to describe poor performance, low quality, something deficient. An engineer who does delivers poor results is referred to as a Schmalspuringenieur, literally a narrow lane engineer. A Schmalspurforscher is a scientist who has achieved little professionally. Schmalbrüstig – literally small or narrow in the chest – is someone who is unathletic.

Grundsätzlich: Relating to what is foundational; in accordance with a principle, in principle; actual, fundamentally; in general, as a rule.

The German people are serious. They value principles, deep-felt beliefs. Er hat keine Prinzipien. He has no principles, is a very serious criticism in the German context. To have no principles, to have no values, which guide one in their behavior, is considered to be a sign of weak character. Germans tend to have discussions about bottom-line thinking, beliefs, and principles.

The German political parties have their Grundsatzprogramm, their foundational political principles, which are formulated for the long term. The Grundsatzprogramm encompasses their foundational political beliefs, upon which the specifics of their political platform are formulated. Their election campaigns are closely aligned with these ideas. The Grundsatzprogramm is seldom modified. To go against it, to follow a political course which strays from it, invites internal rebuke and sanction.

Short. Mid. Long.

Germans think mid- to long-term. Short-term thinking and action is almost always viewed negatively. Germans associate short-term with ungrounded, fleeting, incomplete. When they make decisions they want to know, at least anticipate, what the effect (Auswirkungen) will be in other areas, on other processes, on other colleagues. They strive to understand the mid to long term effects.

Middle High German vrist. Old High German frist: what is current, about to occur; time period in which something should happen; to postpone briefly. Kurz- , mittel- , langfristig means short- , mid- , long-term.

Anstupsen

anstupsen – to nudge, to prod.

In a January 2015 article in DIE ZEIT Tina Hildebrandt writes critically and with irony about the Merkel government engaging experts in order to study what makes the German people happy, and how to move them in that direction. Anstupsen is what the experts call their method.

The experts are developing kleine Entscheidungshilfen – little decision making aids – to prod German citizens in that direction. That is precisely the problem, Hildebrandt writes: “An administration should persuade, not nudge.”

The article demonstrates how quickly Germans get angry when one tries to push them in a certain direction even if only with the help of “little decision making aids.” The slightest suspicion that any action aims to get a decision is immediately counterproductive.

The Germans sense any form of nudge or prod as drängen – as pressure, as pushing. Germans want to be persuaded. And when they make a decision they reject any kind of outside influence.

Business failure is Personal Failure

The Handelsblatt Global Edition from April 23, 2015 reported: Philipp Gloeckler’s business idea was a failure, and he doesn’t mind admitting it. He had what he thought was the perfect concept, an impeccable business plan and great press coverage. Yet, his app, Whyownit, was a disaster.

This is how he found himself at the F***UpNight event in Berlin, a get-together where failed start-up entrepreneurs pick through the bones of their mistakes in the hope that they can do better next time.

“Business failure is often equated to personal failure in this country,” said Rolf Sternberg, a researcher at Leibniz University in Hanover, who recently co-authored a study on young entrepreneurs. “We would win a lot if we would accept failure as a new chance,” he added.

Other than SAP, the software giant founded in 1972, no German tech company has made it onto the global stage. Instead German entrepreneurs are better known for their pursuit of perfection, and finding success within established structures, such as the car industry.

“I am convinced we need to talk about mistakes,” said Béa Beste, whose toy app, which allowed users to subscribe to a toy delivery service for kids, collapsed with the loss of all her investor’s capital as well as her own €300,000 ($322,000). “The worst mistake is being afraid of mistakes,” Ms. Beste said.

Venture capital is scarce in Germany’s risk-averse, conservative economy, so entrepreneurs usually turn to bank loans for funding. But if their business fails and debts are called in, they must go through a lengthy insolvency process which can demand up to six years of “good conduct” before the slate is wiped clean.

Line between Strategy and Tactics

An Auftrag implies a certain distance between team lead (who issues the mission) and team member (who completes the mission). This distance is part of a shared logic. The focus is on the mission and less so on the relationship between team lead and team member. The team lead transfers responsibility for the mission‘s completion to the team member.

The team lead as Auftragserteiler – mission issuer – focuses primarily on issues at a higher level than on the particular missions of the team. The team member as Auftragserfüller – mission completer – is willing and capable of defining the how and completing the mission in the spirit of the Auftrag. The team member takes ownership of the mission, works independently, is in a sense more partner than employee of the team lead.

Naturally team leads and members are constantly adjusting the line between what is strategy (responsibility of the team lead) and what is tactics (responsibility of the team member). In the German context, however, this line is set rather high, meaning the team lead formulates the mission consciously in general, less specific terms. This gives the team member maximum freedom on the tactical level.

And although there will be variations in where German team leads and members draw that line between strategy and tactics – based on the people involved, their experience working together and the nature of the work – the logic remains constant:

The German lead purposely avoids adding to the mission statement any kind of recommendations or specifications about how the mission should be executed (tactics). The how is the responsibility of the team member. It is expected of her/him that they complete the mission independently and without unnecessarily drawing on the team lead‘s time and energy.

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