Germany – Page 27 – understand-culture

Führen mit Auftrag

Führen mit Auftrag, a multifaceted leadership concept roughly translated as Leading by Mission, has been the foundational leadership principle in the German military over the last two hundred years. It has its roots in the famous Prussian Reforms of the early 19th Century when the Germans did a comprehensive root cause analysis of why they were so suddenly and thoroughly defeated by Napoleon‘s armies.

Führen mit Auftrag – leading by mission – is how Germans define Menschenführung or leadership of men. The officer issues to his troops a mission, a goal. It is generally formulated, includes a time component and an indication of forces required. It is then up to the next level to devise how they will complete the mission independent of their leadership.

Unique about Führen mit Auftrag is the degree of freedom on the tactical level given to those issued the mission. As long as they complete the overall mission, they decide independently which approach is best, including significant adjustments to possible changes in the situation. Required at the tactical level are flexibility, creativity and executing independent of next-level leadership.

Of critical importance to Führen mit Auftrag is that the tactical level understand clearly and thoroughly the strategic thinking of their commanding officer, and are trained to act independently of that commanding officer, yet in the spirit of his strategic intent.

Those on the tactical must also possess both good judgement and the will to make independent decisions. They must have a strong sense of responsibility and duty. The commanding officer, for his or her part, must make their strategic thinking clear, transparent and understandable for those on the tactical level.

Führen mit Auftrag – Elements

Führen mit Auftrag – very loosely translated as leading by mission – is the foundational leadership principle in the German armed forces, and has been since the early 1800s. It has six key elements:

1. Decision making: Those with the most expertise should be involved. The team analyzes the Auftrag (mission), the parameters of the situation, and the possible options to complete the mission. This is the basis for making the optimal decision and for maintaining motivation and morale within the team.

2. The Auftrag describes the goal: The core task of military leadership is to issue well-defined Aufträge, missions. The focus is on defining the end state, not the specific action taken to reach it. Define the goal clearly, allow as much tactical freedom as possible. The path to the goal is best defined by those at the front. A clear Auftrag allows the tactical level to make necessary adjustments due to situational changes independent of their leadership.

3. Context and boundary conditions: The Auftrag includes a description of the mission‘s boundary conditions. The tactical level needs to understand how its mission fits into the broader strategic picture. They should be informed and understand the strategic thinking two level above their own. This allows the tactical level to make independent decisions should next-level leadership not be reachable.

4. Resources: Critical to mission completion is providing the tactical level with all necessary resources. Anything less is not only unfair, it threatens team morale and the mission itself. Capable commanders do their best to prevent a gap between mission and resources.

5. Coordination of forces: If the Auftrag requires action by several units, disciplines, organizations, then it is critical to clarify lines of authority and of communication. Overlaps should be avoided, areas of integrated approaches well defined.

6. Communications and reporting: Information flow needs to be set both on the tactical level and between the tactical and strategic levels. Progress reports are critical not only within military units, but also between the military and their civilian commanders.

74 Billion Dollars

On May 7th, 1998 Jürgen Schrempp, CEO of Daimler, and Bob Eaton, CEO of Chrysler appeared together at a press conference in London to announce a merger between the two companies. It was emphasized that this was not a takeover by one company of the other, but rather a fusion between equal parties. Schrempp deemed the merger of Daimler and Chrysler “a match made in heaven”.

After two years, Co-chairman Eaton announced his resignation, leaving Schrempp to be the sole head. In 2006 Schrempp passed this position on to Dieter Zetsche. By March 2007 the first speculations began to emerge that DaimlerChrysler would sell the ChryslerGroup.

Since the merger, Chrysler had reduced its net worth by 35 billion Euros, while the net worth of DaimlerChrysler has been reduced by another 50 billion by the end of Schrempp’s resignation in 2005. On May 14th, 2007 the sale of ChryslerGroup to Cerberus was announced. During a special general assembly on October 4th, 2007 it was officially decided to rename the company Daimler AG.

For Mercedes-Benz this merger to DaimlerChrysler AG seriously damaged the company’s image, which many attribute to quality issues and cost-cutting. The leading role which Daimler-Benz AG once had in the auto industry has still not been completely restored.

A study conducted by the consulting firm McKinsey estimated that the company’s value had dropped during Schrempp’s reign by 74 billion dollars.

Better a bird in the hand

“Besser den Spatz in der Hand als die Taube auf dem Dach” – better a sparrow in the hand than a dove on the roof – is a popular German saying expressing the German aversion to risk.

Aversion to risk and conservativeness go hand-in-hand. Never want too much, be satisfied with what you have.“ Den Mund nicht voll nehmen.” – Don’t bite off more than you can chew.

Only 13 percent of Germans invested in stocks and shares during 2014. Despite rock-bottom interest rates, the majority of savers continued putting their money into trusted bank savings accounts and fixed-return financial products.

Think first. Then act.

Germans often have the impression that their American colleagues gather too little information before making a decision. Valuable information sources are not tapped into. Comparisons are made “on thin ice.” Early indications based on subjective sources are not questioned critically.

All these reservations go against the German belief in erst denken, dann handeln – think first, then act. For richtig denken – literally right or correct thinking, in the German context means holding down (controlling) the natural impulse to act until the situation has been analyzed and the consequences of actions thought through.

It should be of no surprise, therefore, that Germans often see American analysis as insuffiently stringent. They see a narrow and incomplete focus on only certain aspects of the decision to be made. They fear that the Americans overestimate their ability to do a sauber – clean analysis.

This is underlined by what the Germans believe is an American tendancy to take subjective information too strongly into consideration. They are surprised when their counterparts do not use those tools and standards which have proven to be successful.

In the end Germans see their Americans colleagues as too pragmatic, too inaxact. Insufficient results are accepted too quickly. This is very difficult for Germans to accept as a people which places so much emphasis on avoiding errors via accepted tools and standards, errors which could be the source of a Systemzusammenbruch – literally system collapse. Germans see themselves sliding into danger which can only be stopped through analysis performed twice or even three times over.

Article 65, German Basic Law

Germany‘s Grundgesetz or Basic Law is the equivalent of a constitution. Artikel 65 of the Grundgesetz defines the working relationship between the Chancellor and the cabinet:

„The Federal Chancellor defines and is responsible for the overall political goals of the government. Within the framework of these goals each cabinet member is responsible for leading their department independently.”

It continues:

“Differences of opinion among cabinet members are clarified by the Chancellor and the other cabinet members. The Chancellor leads the government based on a political platform formulated by the Chancellor and the cabinet, and which has been approved of by the Federal President.“

Soccer Teacher

In order to coach at the highest level of German professional soccer one needs a license, which is obtained after completing rigorous theoretical and practical training. Once obtained, the professional soccer coach is granted the official title of Fussballlehrer, literally soccer teacher. Not coach. Instead teacher.

Like a school teacher who has given a test, the soccer teacher (the Germans use the term Trainer) has very few levers during the match to influence its outcome. He must hope that his players apply during the match all that they learned and practiced.

The coach (formally Fussballlehrer, informally Trainer) and his staff work with their players on technique, practice specific strategies and set plays, try out different formations. But once the match begins the coach can make only three player substitutions, can to a limited degree yell certain instructions to the players, has only a few minutes at halftime to provide instruction. In the end, therefore, it is the players who have to know how to react to the opposing team.

The coach is practically a bystander. In fact, the rules of soccer prevent too much communication between coach and players during the match. Again, the coach is like a school teacher, who can only hope that his students have paid attention in the classroom, have done their homework conscientiously, and will apply during the examination what was taught to them.

Founderland

A willingness to take risks and a desire to make decisions are the basic requirements for starting a business. Germany is not a land of entrepreneurs.

According to Global Entrepreneurship Monitor (GEM), an annual joint publication of the University of Hannover and the Institute for Jobmarket and Career Research of the German Federal Agency for Employment, only 2.5% of adults in Germany started a business which they could live from. This placed Germany in spot 10 of the 22 compared.

Rolf Sternberg, an economist, considers one reason for the weak culture of entrepreneurship to be the widespread desire toward security:

“The tendency to strive towards security is much more prevalent in Germany than in Anglo-American countries”. This is the flipside of having a well-developed social security system.

Yvonne Stolpmann of Chamber of Commerce in Nürnberg summarizes the situation as such: “Those who give up a permanent position here stand to lose a lot of security. It’s different in the USA”.

“Don’t be pushy!”

Martin Wehrle, a German managment coach, writes career-articles for DIE ZEIT. In a recent article he advises: Nicht aufdrängen! – Don’t be pushy! He notes that many job applicants are far too aggressive, as early as in the initial sentences of their cover letter.

“Because I am a perfect fit for the position, I am sending you my application ….” Starting off like that almost guarantees an immediate rejection, writes Wehrle.

Instead of allowing the reader to make her own judgement, the applicant makes it for them. Personnel departments want to make their own decision who is right for the company. That’s what they get paid for.

Wehrle recommends: “Intelligent applicants act like witnesses before a jury. They don’t push the jury to a decision. Instead they simply state the facts, objectively.

The more objective the witness comes across, the more they are believed. The best applicants don’t speak for their application. Their application speaks for them.

“Pie in the sky“

Jemandem das Blaue vom Himmel versprechen – to promise someone the blue of the heavens – is to promise the unreachable. It is an attempt to persuade via promises which have”weder Hand noch Fuss – neither hand nor foot.

To exaggerate, to paint a rosy picture of future developments is not in any way convincing to Germans. This might be one of the reasons why they are so sceptical about utopias of every kind.