Continuous improvement

Manufacturing automobiles is based on complex production processes. Chassis are formed out of high tensile steel, which are then fitted and painted. Each and every step in the process is made up of smaller, more exact process steps.

All of this cannot work without those involved following processes. Operating on checklists will not lead to road-worthy automobiles.

German cars are known worldwide for their quality, possibly the best in the world. Could that technical quality be based on the quality of processes? Could the strict adherence to well-defined processes be a key to success?

Masters of their work

Germans – both management and employees – strive to work independently, on their own, with as little supervision as possible. Most importantly, Germans expect of themselves and each other a high degree of mitdenken, of thinking with.

Mitdenken not only reduces the need for management oversight – it also means that management need not get too involved in the details of the work on the tactical level, the how. But can German management fully rely on their employees to do their work in the best interest of the company? Germans answer this questions indirectly with a yes.

Whenever cases are uncovered where Germans employers use technology to monitor their employees’ behaviour and/or performance, there is immediate and loud protest not only from those employees, but from the German public in general.

For Germans, to self-manage, to work independently, means a high level of trust between employer and employee, between team lead and team. For Germans, the permission to work in an independent fashion is a sign of recognition, of ability and trustworthiness.

For German employees, it is a clear sign of recognition when they are given a task to complete on their own. They are proud to take on the task, proud of their ability, regardless of whether management voices praise or offers any kind of monetary benefit.

Through the ability to work independently, to need little management supervision, German employees see themselves less as Diener, those who serve, and more as Berater, as collaborating almost as partners with their manager.

To serve a good cause

Einer guten Sache dienen. To serve a good cause.

The Germans believe that when you serve another person – dienen – you have to accept the value system of that person. He who serves, has to do things, has to act in a way, which he might otherwise fully reject. Even more, the person serving is obligated to do his very best.

Germans do not consider this a relief, not as a transfer of moral responsibility from the one serving to the one being served. On the contrary, it represents a burden for them, knowing from the very start that they will invariably come into conflict with their conscience.

On the other hand, when Germans are willing to serve a good purpose, a cause they believe in, they are freely submitting to a belief, taking a moral stand, agreeing with a set of arguments. They can formulate those arguments in a way which fits their values. If one can no longer support the cause, there is no obligation to continue contributing time and effort.

Psychologically this means that serving a good cause, whether through action, financial assistance or communicating a message, means serving one’s own value system. One is obligating oneself freely. Independence and self-determination are protected.

With themselves – In themselves

Why do Germans have such difficulty with dienen, serving? 

Perhaps it has to do with the fact that Germans in many ways live mit sich – with themselves, and in sich – in themselves, in the sense of how they live, where they live. Their surroundings are very much a part of their personality, their self-understanding. 

Unexpected visitors, regulations or limitations on their private lives are quickly interpreted as almost personal attacks. A boss calling unexpectedly, friends dropping by for a visit, colleagues giving unsolicited advice concerning their private lives make Germans feel uncomfortable.

To serve well, though, means to push to the side one’s own values, beliefs, ways of living. The better one can do that, the better one can serve. And that is the difficult part for Germans. 

Germans prefer far more beraten, to advise, or to complete a task. Beraten involves addressing a topic, subject, or problem. It is impersonal, independent of one‘s values, lifestyle, or belief system.

More than just business

A mandate is a serious matter in Germany. The client needs to think through and research carefully, which service providers are not only capable, but more importantly trustworthy.

Even though German law strictly defines the relationship between for example an attorney or tax advisor and the client, the German client seeks a kind of special relationship over the long term, similar to one between a physician and a patient. For the German client its a matter of discretion.

And even when the advisor has significant decision making latitude, there is nonetheless constant dialogue and collaboration between the two parties. This is more than a typical business relationship. It is both business and personal. It is about representing the interests of the client in complex matters.

Both parties need to respect each other at a deeper level. They must be convinced that they can work together. Any kind of misunderstanding can lead to a difference of opinions, which potentially can allow mistrust to seep into the working relationship.

A political mandate is different. Although the office holder focuses on serving the interests of the voters, there is no personal relationship between them. The voters have to demand transparency in order to fully trust their elected office holder.

And because office holders have to represent the interests of many kinds of voters, there is a certain natural level of mistrust over and against her or him. If voters are dissatisfied, or have lost trust in the office holder, the political system enables them to end the relationship.

Taking on a mandate is a complex and delicate matter in Germany. In business as well as in politics.

Abweichen

Duden, the German dictionary, defines abweichen as: to change direction; to be different, to differentiate. 

Synonyms are: differ, deviate, vary, veer, depart, stray, drift, digress, swerve, aberrate. But also to be at variance, to go rogue.

Supplier as Partner

Customer-supplier relationships make up the web of today‘s modern economy. Globalization is demanding more and more specilization. No company can succeed without trusting relationships with suppliers.

Nonetheless, it is the suppliers who first feel the pain when the economy weakens. German companies, however, do their best to maintain their viability, their strength. They want their suppliers to succeed along with them. Suppliers are viewed as partners in innovation.

Germany‘s largest global companies stress, therefore, time and again the importance of maintaining partnerships with their suppliers, how they together strive to establish ever higher standards of quality.

One of the largest German manufacturers of medical technology stated recently that a supplier‘s size in terms of revenue is far less important than its technical ability and willingness to work together over a long period of time. They see themselves as partners in product development.

Another German supplier operating worldwide has developed into a major customer in its own right, setting up a complex international network of suppliers, integrating its research and development area with a few selected suppliers. Its motto is: Des einen Lücke, ist des anderen Expertise, loosely translated as: The gap in the one company, is the expertise of the other.

Standardization

The German Commission on Electronics and Information Technology is an independent, non-profit, national organization which standardizes practices in its industry.

The commission creates norms, sets standards for safety and represents Germany in several European and international norming bodies. Its work results are an integral part of German norms in the area of electronics.

The Association of German Engineers also sets standards, with over 2,000 by 2012. Voluntary experts manage the work and maintain close communications with German industry.

Driving in Germany

“From the German Autobahn to the US Interstate System, der Führerschein or driver’s license – over the past few years we have done a LOT of driving in both Germany and the United States.

Although the US Highway System was modeled after the German Autobahn, you might find some surprising differences. Come ride along with us as we roam the roads of both countries!”

Very helpful, and funny, comments. From Germans. Explaining their logic:

“Germany: The problem that you cannot see the traffic light clearly when you are in the front row is resolved by the fact that the car behind you immediately honks when you are not driving when the traffic light changes to green :-)”

“The main reason why traffic lights in Germany are on your side of the crossing is clarity. Germany with its old town centers has many very irregularly shaped crossings, and a traffic light at the opposite side can not easily be attributed to a certain lane or even a road. When the first traffic lights were introduced in the 1920s, Germany experimented with the placement of the traffic lights on the opposite side or hanging down from cables spanned across the crossing. In the 1950s, all those installations were removed due to constant confusion of drivers.”

“Turning right on red lights is not often used in Germany due to pedestrian and bicycling traffic. When you are waiting on a crossing, chances are high that you not only have to watch out for car traffic, but also for pedestrians and other traffic you don’t regularly have in the U.S.. Thus in Germany, turning right on red lights is decided on a case-by-case base.”

“My instructor in Germany told me early on: “You are behind the wheel, you are handling a weapon.” This stuck with me.”

“About the driver’s license: there is a 40% fail rate on both the theoretical and practical exams here in Germany, which says a lot about the quality of the drivers the government is striving for. As I tell my kids: Driving is easy. Being a driver is not.”

Want to know the why for a culture’s behavior? Simply ask them.

Gesellschaftsvertrag

The German cultural Gesellschaftsvertrag reflects a deep-rooted social contract philosophy that traces back to the Middle Ages. Historically, German nobility saw themselves as responsible caretakers of their people. In exchange for loyalty, work, and taxes, they provided security and social stability. This legacy shaped German business ethics, emphasizing that companies are not purely profit-driven entities focused solely on shareholder value.

In contemporary German business culture the Gesellschaftsvertrag or social contract signifies that the primary responsibility of companies is first to their employees—to keep them employed and protected. The next priority is serving and contributing to the wider society, followed closely by fulfilling duties to customers and suppliers. Only after these responsibilities are met do shareholders’ interests come into priority. This hierarchy illustrates an ethos where social responsibility and care for people underpin business decisions.

This cultural framework aligns with German business values such as social responsibility, corruption-free operations, formal structures, clear roles, long-term relationships, and sustainability. German companies often adopt a collaborative approach with strong legal and ethical boundaries. Corporate social responsibility is taken seriously, encouraged by both internal company practices and external regulations.

The German Gesellschaftsvertrag embodies a traditional and modern blend of legal structure and ethical social obligations—a social contract where business success is tied fundamentally to the well-being of employees, society, and sustainable partnerships, not just shareholder profits. This perspective is a distinctive and influential part of Germany’s corporate culture and legal business environment.

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