Germany – Page 29 – understand-culture

Command or Auftrag

A command, an order, an Auftrag are all forms in which military commanders communicate their intent. They are different in character, however. Commands and orders are strict, well defined, to be executed as stated. An Auftrag is the least strict in the sense of prescriptive, of defining the how as well as the what.

A command or order allows for little freedom in defining the how. A command defines the what and the how in detail. An Auftrag describes only the goal, thus allowing freedom to choose the best path to it. An Auftrag communicates intent, clearly and within the broader strategic context.

Depending on the situation, the line between an order and an Auftrag is in flux. The core of an Auftrag is the what. It can, though, include parameters such as the when and the where. The more detailed an Auftrag is about the how, the more it takes on the character of a command or order.

How a society feeds itself

How a society fundamentally defines the everyday working relationship between leader and led – between two levels of hierarchy – is imbedded in how that society feeds itself. In companies engaged in commerce.

If that working relationship does not function well, if it fails, not only is the respective project in jeopardy, the ability of companies to meet the needs of their customers is at risk. Defining and managing the line between strategy and tactics is in the business context critical to the profitability of every team within every commercial enterprise.

The American business tradition in practice involves a close working relationship between leader and led, between team lead and team.

The Chief Executive Officer (CEO) of an American company, for example, is the leader of the company. He or she manages directly the other managing board members, such as the Chief Financial Officer (CFO), the Chief Operations Officer (COO).

Every fifth DAX share

German investors have a safety first mentality when it comes to money. Their aversion to risk is often attributed to the economic turmoil of the 20th century. The hyperinflation of the 1920s and the devastation of two world wars have burned themselves into the nation’s psyche.

Since early 2009, the share prices of DAX-listed companies have tripled on average — an increase of €800 billion, or $860 billion. Germans park their money in safe investments like savings deposits or life insurance policies.

54.3 percent of shares in the DAX are held by foreign investors — more than ever before. U.S. investors are the biggest single group of foreign investors. Every fifth DAX share is owned by North American investors.

External Expertise

Germans often involve external experts, who have a broader Überblick, in a critical decision making process. As a neutral party they can ensure that the most current analytical techniques are employed, thus minimizing the risk of errors causing serious harm. Even those Germans confident in their ability to execute a critical decision making process will refer time and again to the highest standards in their industry.

Expertise. Analysis performed by a neutral expert. Deep subject area knowledge. “She is considered one of the finest experts her field.”

The Germans believe that truly objective criteria and analytical approaches exist, that they can be identified and used. Germans constantly work towards objectivity. For them analysis can only be of value if objective.

Standards. English standard: something which is considered to be the best in its kind, a model, an example; the quality against which all is compared, measured; norm, measure, a plumb line.

Some of the highest standards for hygiene, for example, are found in German hospitals, restaurants and hotels. To receive several stars requires meeting those standards.

There are labels and awards for almost all products in Germany: Fair trade labels for products from the southern hemisphere; ecology labels for organic foods; safety labels for mechanical and electrical products used in the home or the workplace. All are based on norms and guidelines.

Pride comes before the fall

Deutsche Telekom – German Telecom – has had several stock offerings. Its first in 1996 was accompanied by a carefully orchestrated marketing campaign which was a huge success.

People who had never owned stocks flocked to the T-Aktie, to T-Shares. The Aktieneuphorie – stock market euphoria – in Germany lasted for several years.

The share price at the first offering was 28.50 DM (14.57 Euros), at the second 39.50 Euros, then 66.50 Euros. On March 6, 2000 the T-Aktie hit its highpoint of 103.50 Euros.

From there it was all downhill. On September 30, 2002 it was at 8.42 Euros. At the beginning of 2015 it just about at 16 Euros.

Shareholders sued Deutsche Telekom in 2008 in Frankfurt. Their claim was that Deutsche Telekom misinformed them about the true value of the company’s real estate holdings, as well as other incorrect statements in their financial statements.

Over 17,000 shareholders demanded roughly 80 million Euros in damages. The court case focused on whether the shareholders were sufficiently informed about the level of risk.

The marketing hype of the T-Aktie was criticized by the shareholders after the fact. “Such marketing campaigns are not appropriate for selling stocks. This isn’t laundry detergent, not toothpaste,” said Jürgen Kurz, head of the German Society for the Protection of Securities Holders. “People should buy stocks in companies, but they should be informed about the risk they are taking.”

The Süddeutsche Zeitung – one of Germany’s leading newspapers located in Munich – wrote at the end of 2014: “The T-Aktie is not just any old stock. It’s a symbol. It made Germans hungry to invest in stocks, and then killed that appetite for years to come. The investors felt cheated, tricked. Unrequited love. Today only half as many Germans hold stocks as in 2000.”

The Switch Operator

Dr. Sigrid Evelyn Nikutta is the head of Berlin’s public transportation authority, and is considered one of Germany’s top managers. Named Manager of the Year in 2012, she is known for her democratic and employee-focused leadership style.

Nikutta characterizes herself as consistent, consequent and cooperative: “Employees are my colleagues. I seen them as people. That is no contradiction to an ambitious leadership style which sets clear goals. Involvement of all key people, on all levels, is critical, in order to make clear and fast decisions, whose results are followed closely.”

Nikutta’s management approach is not only effective, but moreso very popular among today’s German workers. Especially the younger generations prefer a boss who is more of a partner and who communicates transparently.

Successful leadership leads to motivation and results. The head of Berlin’s public transportation authority is a model for successful, consensus-oriented management.

(Un)healthy skepticism

Kenne mer nit, bruche mer nit, fott domet – loosely translated as “Don’t know dat. Don’t need dat. Get it outta here.” A well-known figure of speech in the dialect spoken in the Rhineland. The German fear (Angst) of change. Too much, too fast. A never-ending story.

Especially the older and well-established generations are skeptical of any change. Skepsis is then passed down from one generation to the next, ankering itself deep into the German psyche.

The digitalization of the economy. The move away from fossil fuels to natural energy sources such as wind. A free trade agreement between the European Union and the United States. These and other topics are ever-present in the media, triggering in many Germans feelings of worry. “Why should we change things which have worked for us over the past decades?”

A good example is the reluctance in Germany to make necessary changes in education. “Why should we all of sudden put computers and tablets in the classroom? Do we really need new media in all areas of society? Let’s first take a step back and analyze it carefully. No hasty decisions!”

While the Germans in their ministries and commissions are studying the issue other countries are moving ahead rapidly and preparing themselves for the digital world.

Often, when it comes to reacting to change, Germany, the Land der Dichter und Denker – literally the country of poets and thinkers – falls into a kind of lethargy, of Schockstarre – shock + numbness.

There is nothing wrong with being skeptical about change. It is often difficult, however, for the German people to find the right balance between pessimism and optimism.

Mitbestimmung is Controversial

Although Mitbestimmung – codetermination: the legal right of workers to be represented at the highest levels of management – is foundational to the German social market economy, its merits are debated constantly.

Business (companies and their associations) believes that Mitbestimmung has been taken too far. The many different interests represented makes it too difficult to find consensus. It is an inefficient way to run profitable companies.

In October 2004 Germany’s two largest chambers of commerce (BDI and BDA) demanded reform of the Mitbestimmung. Their main argument was the pressures due to increasing internationalization of their companies. They referred to Mitbestimmung as an historical mistake.

There exists in Germany, however, a cultural and political consensus favoring Mitbestimmung. Germans believe that it provides for stability in companies. Employees identify themselves with them. Productivity is kept at high levels.

An historical mistake?

Baseball and pitch-calling

Steve Krah of the Elkhart Truth (newspaper in Indiana) wrote online: „More and more, catchers at the college and high school levels are seen peeking — or even staring — in the dugout to get the sign from a coach.

While some programs let their pitchers and catchers manage their own games, many others — especially NCAA Division I schools — take that off the battery mates’ plates.

Notre Dame pitching coach Chuck Ristano calls nearly every pitch as well as pick-off tosses and pitch-outs and sets the defense for the Irish.

`I want (the pitcher and catcher) to have some element of ownership in the game, but the reality is we have access to a lot more information than the kids do (like tendency and hitter spray charts),’ Ristano said. `We just want them to focus on executing their pitch.`’

Notre Dame employs a numbers system that is flashed to the catcher, who then consults a wristband chart that suggests which pitch and part of the strike zone to throw the pitch.“

LeBron James calls plays

Sunday, May 10, 2015. Sports Illustrated online.

„Cleveland Cavaliers forward LeBron James says head coach David Blatt wanted him to inbound the ball on the final play of Sunday’s Game 4 but he overruled the coach. Instead, James hit a game-winning jumper as time expired to give the Cavaliers an 86-84 series-tying win.

`To be honest, the play that was drawn up, I scratched it,’ James told reporters. `I just told coach, Give me the ball. We’re either going to go to overtime or I’m going to win it for us. It was that simple.

`I was supposed to take the ball out,’ James continued. `I told coach, There’s no way I’m taking the ball out, unless I can shoot it over the backboard and it goes in. I told him, Have somebody else take the ball out, give me the ball, and everybody get out of the way.’”